{"id":26519,"date":"2024-10-13T23:50:06","date_gmt":"2024-10-13T23:50:06","guid":{"rendered":"http:\/\/108046195"},"modified":"2024-10-13T23:50:06","modified_gmt":"2024-10-13T23:50:06","slug":"nvidia-backed-coreweave-gets-650-million-credit-line-from-top-wall-street-banks","status":"publish","type":"post","link":"https:\/\/wp.worldtechguide.net\/nvidia-backed-coreweave-gets-650-million-credit-line-from-top-wall-street-banks\/","title":{"rendered":"Nvidia-backed CoreWeave gets $650 million credit line from top Wall Street banks"},"content":{"rendered":"<div><img decoding=\"async\" src=\"https:\/\/wp.worldtechguide.net\/wp-content\/uploads\/2024\/10\/nvidia-backed-coreweave-gets-650-million-credit-line-from-top-wall-street-banks.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<p><span class=\"HighlightShare-hidden\"><\/span><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-107408856\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>In this photo illustration, a Core Weave logo is displayed on a smartphone with stock market percentages on the background.<\/p>\n<p>Omar Marques | SOPA Images | Lightrocket | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>CoreWeave, an <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-1\"><span class=\"waslinkname\">Nvidia<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span>-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.<\/p>\n<p>The cloud infrastructure company said it&#8217;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 <span class=\"waslinkname\">$19 billion valuation<\/span>.<\/p>\n<p>By the end of 2024, CoreWeave plans to have 28 data centers across the U.S. and abroad \u2014 including locations in Austin, Texas, Chicago, Las Vegas and London \u2014 and it plans to build another 10 data centers in 2025. In the past, CoreWeave <span class=\"waslinkname\">has supplied<\/span>&nbsp;<span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-4\"><span class=\"waslinkname\">Microsoft<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> and French AI startup Mistral with graphics processing units, or GPUs.<\/p>\n<p>As of last year, CoreWeave reportedly had <span class=\"waslinkname\">$2 billion<\/span> in revenue under contract lined up for 2024.<\/p>\n<p>AI models are notoriously expensive to build and train, requiring thousands of specialized chips that, to date, have largely come from&nbsp;<span class=\"waslinkname\">Nvidia<\/span>. 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.<\/p>\n<p><span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-7\"><span class=\"waslinkname\">Goldman Sachs<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span>, <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-8\"><span class=\"waslinkname\">JPMorgan Chase<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> and <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-9\"><span class=\"waslinkname\">Morgan Stanley<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> led the financing CoreWeave announced Friday, with participation from Barclays, Citi, Deutsche Bank, Jefferies, Mizuho, MUFG and Wells Fargo.<\/p>\n<p>&#8220;This credit facility provides additional liquidity to accelerate our growth strategy and capitalize on new opportunities in the rapidly evolving AI space,&#8221; Mike Intrator, CoreWeave&#8217;s co-founder and CEO, said in a press release.<\/p>\n<p>CoreWeave&#8217;s new credit line is part of a broader trend, as banks are positioning themselves for a slice of the <span class=\"waslinkname\">AI<\/span> gold rush ahead of a number of potential IPOs in the space. The generative AI market is poised to<span class=\"waslinkname\">&nbsp;top $1 trillion<\/span>&nbsp;in revenue by 2032, according to one estimate.<\/p>\n<p>Last week, OpenAI received a <span class=\"waslinkname\">$4 billion revolving line of credit<\/span>, bringing its total liquidity to more than $10 billion. The news came just after <span class=\"waslinkname\">OpenAI closed its latest funding round<\/span>&nbsp;at a $157 billion valuation.<\/p>\n<p>Many of the same banks contributed to OpenAI&#8217;s credit line. The startup has an option to increase it by an additional $2 billion.<\/p>\n<p>CoreWeave declined to provide details about the interest rate it&#8217;s paying or the timeframe for the credit facility.<\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"RelatedContent-relatedContent\" id=\"SpecialReportArticle-RelatedContent-1\">\n<div class=\"RelatedContent-container\">\n<div class=\"RelatedContent-nonCollapsibleContent\">\n<h2 class=\"RelatedContent-header\">Don\u2019t miss these insights from CNBC PRO<\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>In this photo illustration, a Core Weave logo is displayed on a smartphone with stock market percentages on the background. Omar Marques | SOPA Images | Lightrocket | Getty Images 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 &hellip;<\/p>\n","protected":false},"author":1,"featured_media":26520,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"hashtags":[],"class_list":["post-26519","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech","has-thumb","has-featured"],"_links":{"self":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/posts\/26519"}],"collection":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/comments?post=26519"}],"version-history":[{"count":0,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/posts\/26519\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/media\/26520"}],"wp:attachment":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/media?parent=26519"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/categories?post=26519"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/tags?post=26519"},{"taxonomy":"hashtags","embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/hashtags?post=26519"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}