Artificial intelligence (AI) hyperscaler CoreWeave has secured a $7.5 billion debt financing facility.
The company will use the new financing to further develop its high-performance compute fleet to execute contracts with enterprise and AI customers, according to a Friday (May 17) press release.
The co-lead investors in this debt financing round are Blackstone and Magnetar, according to the release.
“CoreWeave is building the infrastructure to power the AI innovations that are already changing how businesses operate in the global economy,” Michael Intrator, CEO and co-founder of CoreWeave, said in the release. “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.”
CoreWeave Cloud uses software and automation to deliver high-power infrastructure that meets the needs of AI engineers and innovators, according to the release.
Its offerings in the cloud market help meet the demand for computational resources from AI workload that define “the next era of computing,” the release said.
CoreWeave’s customized solutions deliver capabilities for machine learning (ML) and AI, graphics and rendering, life sciences, real-time streaming and other applications, per the release.
“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,” Brad Marshall, global head of private credit strategies at Blackstone, said in the release.
David Snyderman, chief investment officer and managing partner at Magnetar, added in the release: “Given their already substantial and expanding AI infrastructure capabilities, coupled with enhanced institutional backing, CoreWeave is exceptionally well positioned to deliver high performance compute.”
Both tech titans and startups are investing billions in AI infrastructure, training and development as they race to harness AI’s transformative potential and reshape industries, PYMNTS reported May 10.
Recent examples include Microsoft planning a $3.3 billion AI data center in Wisconsin, startup Atlan raising $105 million for its AI-ready data stack, and Mistral AI seeking funds at a $6 billion valuation for open-source language models.