CoreWeave claims to offer lower on-demand prices than any major cloud company and even Microsoft has started relying on it for supplying OpenAI with the necessary computing power. The new debt will be used to pay for servers loaded with GPUs, networking equipment and cabinets. However, the company declined to comment on whether it is using Nvidia GPUs as collateral for the new debt financing.
Key takeaways:
- Artificial intelligence infrastructure startup CoreWeave has raised $7.5 billion in debt to invest more in its cloud data centers, following a $1.1 billion equity funding round.
- CoreWeave is a main provider of Nvidia's chips for running AI models, making it a sought-after company as demand for the technology increases.
- Despite competition from major cloud infrastructure operators like Amazon and Google, CoreWeave claims to offer lower on-demand prices.
- Microsoft, the world's second-largest provider of cloud infrastructure, has started relying on CoreWeave to supply OpenAI with the computing power it needs.