In this illustrated photo, the Core Weave logo is displayed on a smartphone with stock market percentages displayed in the background.
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CoreWeave, NvidiaA U.S.-backed artificial intelligence startup that rents chips to other companies announced Friday it has taken out a new $650 million loan facility to expand its business and data center portfolio.
The cloud infrastructure company has raised $12.7 billion from equity and debt investors in the past 18 months, including a $1.1 billion round in May at a valuation of $19 billion. He said that it also includes things that have happened.
By the end of 2024, CoreWeave plans to have 28 data centers in the U.S. and internationally, including Austin, Texas, Chicago, Las Vegas, and London, with 10 more in 2025. I plan to. supplied microsoft and Mistral, a French AI startup with graphics processing units (GPUs).
As of last year, CoreWeave reportedly had $2 billion in revenue with contracts scheduled for 2024.
AI models are notoriously expensive to build and train, requiring thousands of specialized chips, most of which so far have been made by Nvidia. Most, if not all, of the big tech companies in AI are spending hundreds of thousands to billions of dollars on Nvidia chips to make their models work. And in addition to developing chips, Nvidia has acquired stakes in emerging AI companies like CoreWeave. This is also part of how we ensure that our technology is widely deployed.
goldman sachs, JP Morgan Chase and morgan stanley CoreWeave led the funding announced Friday, with participation from Barclays, Citi, Deutsche Bank, Jefferies, Mizuho, MUFG and Wells Fargo.
“This credit facility will accelerate our growth strategy and take advantage of new opportunities in the rapidly evolving field of AI,” Mike Intrater, CoreWeave co-founder and CEO, said in a press release. “We will provide additional liquidity for this purpose.”
CoreWeave’s new lending facility is part of a broader trend as banks position themselves to be part of the AI gold rush ahead of a number of potential IPOs in the space. According to some estimates, the generative AI market will exceed $1 trillion in revenue by 2032.
Last week, OpenAI received a $4 billion revolving credit facility, bringing its total liquidity to more than $10 billion. The news comes shortly after OpenAI closed its latest funding round at a valuation of $157 billion.
Many of the same banks contributed to OpenAI’s financing facility. The startup has an option to increase the amount by another $2 billion.
CoreWeave did not provide details about the interest rate it pays or the term of the credit facility.
