CoreWeave CEO Michael Intrator was interviewed by CNBC on May 9, 2024.
CNBC
Artificial intelligence infrastructure startup CoreWeave has just completed a $1.1 billion round of equity financing and has raised $7.5 billion in debt to increase investment in its cloud data centers.
Blackstone The fund led the loan round, with Coatue, Carlyle, black stone and others. CoreWeave was valued at $19 billion in an equity financing two weeks ago.
Investors are flocking to CoreWeave as the 550-employee company is NVIDIA Chips used to run artificial intelligence models. Since the launch of OpenAI’s ChatGPT in late 2022, businesses in nearly every industry are racing to integrate AI chatbots into their products, and demand for the technology is soaring.
With Nvidia’s AI-focused graphics processing units in limited supply, CoreWeave’s access to these processors makes them a hot commodity.This means CoreWeave, powered by Nvidia, is competing with the world’s top cloud infrastructure operators, including Amazon and Google.
CoreWeave claims on its website that its on-demand prices are lower than any major cloud company.even MicrosoftThe world’s second-largest cloud infrastructure provider has turned to CoreWeave to help provide OpenAI with the computing power it needs.
Nvidia finance chief Colette Kress said at a Citi event in September that CoreWeave “has quite a bit of skill in terms of adoption speed and setting speed.”
A CoreWeave spokesman declined to comment on whether the company used Nvidia GPUs as collateral for the new debt financing. Last year, such GPUs were used as collateral for a $2.3 billion debt round. Reuters reported.
The new debt will help CoreWeave pay for GPU-loaded servers, as well as networking equipment and racks, a spokesman said.
Correction: An earlier version of this article misspelled Colette Kress’s name.
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