CoreWeave, an NVIDIA-backed AI startup that rents out GPUs, announced this week it has secured a $650 million credit line to expand its business and data center portfolio. The financing was led by top Wall Street banks, including Goldman Sachs, JPMorgan Chase, and Morgan Stanley, with support from Barclays, Citi, Deutsche Bank, and others.
CoreWeave 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 $19 billion valuation. The company plans to have 28 data centers across the U.S. and abroad by the end of 2024, including sites in Austin, Chicago, Las Vegas, and London, with an additional 10 centers planned for 2025. CoreWeave’s clients include Microsoft and French AI startup Mistral.
CEO Mike Intrator said the credit facility provides the liquidity needed to accelerate CoreWeave’s growth and capitalize on new AI opportunities. The credit line comes as financial institutions increasingly position themselves for the booming AI sector, projected to reach $1 trillion in revenue by 2032.
CoreWeave, which had $2 billion in contracted revenue for 2024, declined to provide specifics on the interest rate or duration of the credit facility. This deal follows a broader trend of AI startups securing large-scale financing, as seen with OpenAI’s recent $4 billion revolving credit line.
Featured image: Credit: CoreWeave
