Nvidia-backed CoreWeave picks up $650 million credit line

In this photo illustration, a Core Weave logo is displayed on a smartphone with stock market percentages on the background.
CoreWeave, an Nvidia -backed artificial intelligence startup that rents out chips to other companies, announced Friday that it has a new $650 million credit line to expand its business and data center portfolio.
The cloud infrastructure company said it’s 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.
By the end of 2024, CoreWeave plans to have 28 data centers across the U.S. and abroad — including locations in Austin, Texas, Chicago, Las Vegas and London — and it plans to build another 10 data centers in 2025. In the past, CoreWeave has supplied Microsoft and French AI startup Mistral with graphics processing units, or GPUs.
As of last year, CoreWeave reportedly had $2 billion in revenue under contract lined up for 2024.
AI models are notoriously expensive to build and train, requiring thousands of specialized chips that, to date, have largely come from Nvidia. Most, if not all, tech companies that are power players in AI spend between hundreds of thousands and billions of dollars on Nvidia chips to make their models work. And in addition to developing the chips, Nvidia has taken stakes in emerging AI companies like CoreWeave, partly as a way to make sure its technology gets widely deployed.
Goldman Sachs , JPMorgan Chase and Morgan Stanley led the financing CoreWeave announced Friday, with participation from Barclays, Citi, Deutsche Bank, Jefferies, Mizuho, MUFG and Wells Fargo.