CoreWeave, a cloud infrastructure startup backed by Nvidia, has secured a $650 million credit line to accelerate the expansion of its data center network.
The AI-focused company, known for renting out chips to businesses, has raised $12.7 billion over the past 18 months, including $1.1 billion in May.
This brings its valuation to $19 billion.
The new funding will support CoreWeave’s plan to open 28 data centers by the end of 2024, with new locations in Austin, Chicago, Las Vegas, and London.
An additional 10 centers are planned for 2025, further expanding its presence in the competitive AI infrastructure market.
CoreWeave has top-tier clients like Microsoft and Mistral
CoreWeave has drawn significant backing from both equity and debt investors to support its rapid expansion in AI cloud infrastructure.
The $12.7 billion raised in the last year and a half includes a $1.1 billion funding round in May.
This capital will enable CoreWeave to continue growing its AI business, where it supplies top-tier clients like Microsoft and French AI startup Mistral with Nvidia graphics processing units (GPUs).
These specialized chips are crucial for developing and training AI models, making CoreWeave a key player in the AI ecosystem.
CoreWeave eyes $2 billion in 2024 revenue
CoreWeave’s expansion is driven by strong revenue projections, with $2 billion already under contract for 2024.
The company’s aggressive data center rollout aims to support this growth, with plans to operate 28 centers across the US and internationally by the end of next year.
These centers, located in cities such as Austin, Chicago, and London, will provide the computing power needed by AI clients to run complex models.
By 2025, CoreWeave plans to add another 10 centers, cementing its role as a major provider of AI infrastructure.
CoreWeave’s latest $650 million credit line, secured from major financial institutions like Goldman Sachs, JPMorgan Chase, and Morgan Stanley, reflects growing investor interest in capitalizing on the AI boom.
The generative AI market is expected to surpass $1 trillion in revenue by 2032, with CoreWeave poised to capture a significant share.
The credit facility secured by CoreWeave is part of a broader trend where financial institutions are vying for a foothold in the lucrative AI market.
Leading banks, including Barclays, Citi, and Wells Fargo, participated in the financing, aligning themselves with AI’s projected trillion-dollar revenue potential.
This move follows other significant deals in the AI space, such as OpenAI’s $4 billion revolving credit line, illustrating how banks are positioning themselves to benefit from the rapidly growing AI sector.
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