However, CoreWeave's debt now totals $9.9 billion, and it is speculated that the company has secured the loan with its GPUs as collateral, a risky move as these are crucial to its operations. Despite the risk, the loan could help CoreWeave grow further and potentially achieve hyperscaler status, a feat only achieved by tech giants like Google, Amazon, and Microsoft.
Key takeaways:
- AI server startup CoreWeave has raised $7.5 billion in a debt deal from private equity companies Blackstone, BlackRock, and others to expand its business model of renting out AI computing resources.
- The company plans to use the funds to purchase servers and networking equipment, aiming to operate 28 datacenters by the end of the year, including two in the UK, marking its first international expansion.
- CoreWeave's total debt now amounts to $9.9 billion and it was most recently valued at $19 billion. In its last debt deal, the company used its own GPUs as collateral, a risky move as they are crucial to its operation.
- Despite the risks, the loan could help CoreWeave grow further and potentially become profitable if its business model of renting AI computing proves successful.