Nvidia-Backed AI Infrastructure Company CoreWeave Secures $7.5 Billion in Funding

CoreWeave has secured an impressive $7.5 billion in debt financing, aimed at enhancing its specialized cloud infrastructure for artificial intelligence (AI) and machine learning workloads. Founded in 2017 and headquartered in Roseland, New Jersey, CoreWeave is becoming a prominent player in the cloud solutions market, providing robust services for organizations focused on training and deploying AI models. Additionally, their data centers cater to non-AI applications such as graphics rendering and real-time streaming.

This debt financing round saw participation from prominent investors, including funds managed by Blackstone, with additional backing from Magnetar, Coatue, and DigitalBridge Credit. Notable figures like Nvidia, former GitHub CEO Nat Friedman, and former Y Combinator investor Daniel Gross have also shown their support in previous investment rounds.

The substantial funds raised will be directed towards expanding CoreWeave's hardware inventory. The company currently boasts access to H100 GPUs located in its data centers—Nvidia’s leading hardware solution until the highly anticipated Blackwell series launches in 2025. Furthermore, CoreWeave plans to double its global data center footprint to 28 facilities by the end of 2024.

Michael Intrator, CEO and co-founder of CoreWeave, articulated the company's vision: “CoreWeave is building the infrastructure to power the AI innovations that are already changing how businesses operate in the global economy. The caliber of investors in this large debt financing round is a powerful testament to both the insatiable market appetite for AI infrastructure and their belief in CoreWeave's ability to deliver cutting-edge innovation for the largest AI labs and innovators at scale.”

Initially, CoreWeave started its journey as a crypto venture, leveraging its hardware primarily for Ethereum mining. The company has since pivoted to focus on high-intensity computing workloads, boasting infrastructure that delivers performance up to 35 times faster and 80% more cost-effective than traditional cloud providers. Over the last year alone, CoreWeave has raised more than $12 billion, showcasing its rapid growth and market appeal.

Recently, the company expanded its operations into Europe by opening a new office in London in early May. Intrator expressed excitement about the company’s future: “We are really just getting started. Our ambitions are to help reshape the cloud landscape, accelerate the AI race, and power the next generation of AI innovation that is changing the course of history.”

Blackstone’s global head of private credit strategies, Brad Marshall, emphasized the significance of this funding, stating, “We are excited to lead one of the largest private credit financings in history. CoreWeave has established itself as a leading provider of critical infrastructure to support the AI revolution, and we're looking forward to partnering with the company on its growth journey.”

With these strategic moves, CoreWeave is poised to make a lasting impact on the future of cloud computing and artificial intelligence.