Artificial intelligence (AI) hyperscaler Coreweave has secured a $7.5 billion debt financing facility.
The company will use the new funding to further develop its high-performance computing fleet to fulfill contracts with enterprise and AI customers, according to a Friday (May 17) press release.
Blackstone and Magnetar are the co-lead investors in the debt financing round, according to the release.
“CoreWeave is building the infrastructure to power the AI innovations that are already changing the way businesses operate in the global economy,” Michael Intrater, CEO and co-founder of CoreWeave, said in a release. mentioned in. “The ability of the investors to participate in this large debt financing round reflects the market's insatiable appetite for AI infrastructure and their confidence in CoreWeave's ability to deliver cutting-edge innovation to the largest AI labs and innovators. There is strong evidence of both.”
According to the release, CoreWeave Cloud uses software and automation to provide high-power infrastructure to meet the needs of AI engineers and innovators.
The company's products in the cloud market will help meet the demands for compute resources from AI workloads that will define the “next era of computing,” the release said.
With each release, CoreWeave's customized solutions deliver capabilities for machine learning (ML) and AI, graphics and rendering, life sciences, real-time streaming, and other applications.
“CoreWeave has established itself as a leading provider of critical infrastructure supporting the AI revolution, and we look forward to partnering with them on their growth journey,” said Blackstone's Global Head of Private Credit Strategy. Brad Marshall said in a release. .
David Snyderman, Magnetar's chief investment officer and managing partner, added in the release: “Given our already rich and expanding AI infrastructure capabilities and enhanced institutional support, CoreWeave is extremely well-positioned to deliver high-performance computing.”
Both big tech companies and startups are investing billions of dollars in AI infrastructure, training and development as they race to harness the transformative potential of AI and reshape industries, according to PYMNTS. Reported on May 10th.
Recent examples include Microsoft planning a $3.3 billion AI data center in Wisconsin, startup Atlan raising $105 million for its AI-enabled data stack, and Mistral AI These include seeking funding for an open source language model valued at $6 billion.