CoreWeave, a NvidiaThe China-backed artificial intelligence startup, which leases chips to other firms, said Friday it has a brand new $650 million credit line to expand its business and data center portfolio.
The cloud infrastructure company said it raised $12.7 billion from equity and debt investors over the past 18 months, including a $1.1 billion round in May at a $19 billion valuation .
By the top of 2024, CoreWeave plans to have 28 data centers within the US and abroad – including locations in Austin, Texas, Chicago, Las Vegas and London – and plans to construct a further 10 data centers in 2025. In the past, CoreWeave has delivered Microsoft and the French AI startup Mistral with graphics processors or GPUs.
CoreWeave had reportedly done this last yr 2 billion dollars Sales under the contract planned for 2024.
Building and training AI models is notoriously expensive and requires 1000’s of specialised chips, most of which have to date come from Nvidia. Most, if not all, technology firms that play a number one role in AI spend between lots of of 1000’s and billions of dollars on Nvidia chips to make their models work. And along with developing the chips, Nvidia has taken stakes in emerging AI firms like CoreWeave, partially to make sure its technology is widely adopted.
Goldman Sachs, JPMorgan Chase And Morgan Stanley led the financing, which CoreWeave announced Friday, with participation from Barclays, Citi, Deutsche Bank, Jefferies, Mizuho, MUFG and Wells Fargo.
“This credit facility provides additional liquidity to accelerate our growth strategy and pursue new opportunities in the rapidly evolving AI space,” CoreWeave co-founder and CEO Mike Intrator said in a press release.
CoreWeave's recent credit line is an element of a broader trend as banks position themselves for a chunk of the AI gold rush ahead of quite a few potential IPOs within the space. The generative AI market is just across the corner Top $1 trillion According to at least one estimate, sales will increase until 2032.
Last week, OpenAI received a $4 billion revolving credit facility, bringing its total liquidity to over $10 billion. The news got here shortly after OpenAI closed its latest funding round at a valuation of $157 billion.
Many of those banks have contributed to OpenAI's credit line. The startup has the choice to extend the quantity by a further $2 billion.
CoreWeave declined to supply details on the rate of interest paid or the timeframe for the credit facility.
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