CoreWeave secures $650 million credit facility to expand AI cloud-computing services

Cloud-computing startup CoreWeave Inc. has secured a $650 million credit facility led by JPMorgan, Goldman Sachs, and Morgan Stanley, marking another significant step in its rapid expansion within the artificial intelligence (AI) sector. The financing, which will support CoreWeave’s growth initiatives, raises the company's total debt and equity funding to an impressive $12.7 billion over the past 18 months, the Roseland, New Jersey-based company announced on Friday.

The credit facility also saw participation from Barclays, Citibank, and Jefferies, signaling strong financial backing for CoreWeave as it continues to position itself as a key player in the booming AI cloud-computing market.

Riding the AI Wave

Founded in 2017 by Michael Intrator, CoreWeave began as a crypto-mining venture but has since evolved into one of the most valuable AI startups. The company's shift to AI cloud-computing services, supported by investments from major players like Nvidia, has fueled its growth. CoreWeave was valued at approximately $23 billion, according to reports earlier this month.

CoreWeave is a pioneering adopter of Nvidia’s graphics chips, using them in its data centers to meet the rising demand for computing power from AI applications. With AI becoming increasingly vital to tech giants such as Meta, Google, and Microsoft, CoreWeave has been at the forefront of providing the infrastructure necessary to support this technological revolution.

Expansion Plans

In line with its growth strategy, CoreWeave expects to open 28 data centers globally by the end of 2024, with plans to launch an additional 10 data centers in 2025. This expansion aims to meet the growing computational needs driven by AI innovations and support the growing list of companies that rely on cloud services for their AI workloads.

Amidst all this, the company is reportedly considering an initial public offering (IPO) as early as 2025, according to insiders.