Nvidia-backed artificial intelligence company CoreWeave secured a $650 million credit line on Friday as it sought to build its business and continue to grow its data center operations. The new financing is a testament to the rapid expansion that CoreWeave is undertaking in the realm of artificial intelligence.
The company has reportedly raised $12.7 billion in equity and debt capital in the past 18 months, with a new round worth $1.1 billion in May valuing the company at nearly $19 billion. CoreWeave is accelerating its growth strategy with this new credit facility and seeks to capitalize on emergent opportunities within the rapidly changing AI landscape.
The company has envisioned 28 operational data centers across the United States and other parts of the world at major cities like Austin, Chicago, Las Vegas, and London by the end of 2024. Moreover, it envisioned developing 10 more data centers by the end of 2025 and it has also delivered important services for well-known customers in the recent past, such as Microsoft and French AI startup Mistral, supplying them high-performance graphics processing units.
Among the efforts being done by Nvidia in setting its technology on a fast lane include investments in emerging AI companies, one of which is CoreWeave.
Even a credit line of the size announced last Friday by the top Wall Street banks – Goldman Sachs, JPMorgan Chase, and Morgan Stanley – to lure participation from Barclays, Citi, Deutsche Bank, Jefferies, Mizuho, MUFG, and Wells Fargo cannot be underestimated. “It provides us with additional liquidity to expedite our growth strategy and capitalize on emerging opportunities in the rapidly evolving AI landscape,” said CoreWeave co-founder and CEO Mike Intrator.
Funding for the company succeeded in mirroring a more general trend across banks that are looking forward to carving their niche in an ever-expanding AI market, estimated to reach up to $1 trillion in revenue by 2032. OpenAI reinforced this financial landscape by just securing a $4 billion revolving line of credit. CoreWeave did not disclose information about interest or duration of the credit facility.
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