GPU cloud provider CoreWeave has raised $7.5 billion from investors in one of the largest-ever private debt financings. The company is also hiring for data center staff in Spain, revealing further plans to expand into Europe. First reported by the WSJ, Blackstone, and Magnetar were co-lead investors, with Coatue Management, Carlyle Group, CDPQ, DigitalBridge, BlackRock, Eldridge Industries, and Great Elm Capital also taking part.
“We just closed the largest private debt financing of all time, led by Blackstone, with strategic participation from Magnetar (co-lead investor) and Coatue, which will support the unprecedented demand for CoreWeave’s specialized cloud infrastructure,” the company posted on LinkedIn.
WSJ said much of the funding will go towards expanding the company’s data center footprint; Coreweave has said it aims to double its footprint to 28 data centers by the end of this year.
The funds will also go towards purchases of AI chips and associated infrastructure such as servers and networking equipment, CoreWeave’s Michael Intrator told the publication.
“It is a monumental financing in nominal terms, but it’s also a monumental financing in terms of the extent to which it drives the company forward,” he said, adding that he expected the $7.5 billion to be committed this year, after which the company would be back for another facility.
“CoreWeave is building the infrastructure to power the AI innovations that are already changing how businesses operate in the global economy,” Intrator said in a subsequent press 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. And 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.”
Founded in 2017 and originally focused on crypto and blockchain applications, CoreWeave has been investing heavily in its cloud offering, offering access to GPUs for AI applications. The latest financing follows a $1.1 billion equity funding round earlier this month which saw the company valued at $19 billion. It raised $2.3 billion in debt financing last year from Magnetar, Blackstone, BlackRock, DigitalBridge, Coatue, PIMCO, and Carlyle.
“We are thrilled to expand our existing partnership with CoreWeave and strengthen its market leadership in providing the specialized GPU cloud infrastructure required to support today’s explosive growth in AI,” said Jasvinder Khaira, a senior managing director, and John Watson, a managing director, at Blackstone. “AI and digital infrastructure are among our highest conviction themes at Blackstone and we are excited to leverage our global platform and flexible capital to support management as it rapidly deploys AI infrastructure at enormous scale.”