Sunday, July 14, 2024

CoreWeave Secures $7.5 Billion Debt Financing Facility led by Blackstone and Magnetar

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CoreWeave, the AI hyperscaler, announced it has signed a definitive agreement for a $7.5 billion debt financing facility led by funds managed by Blackstone (“Blackstone”), with strategic participation from Magnetar (Co-Lead Investor) and Coatue. Participation in the financing also included Carlyle, CDPQ, DigitalBridge Credit, funds and accounts managed by BlackRock, Eldridge Industries, and Great Elm Capital Corp. The new financing will be used to further develop CoreWeave’s growing fleet of high-performance compute to execute existing contracts with leading enterprise customers and AI innovators.

Today’s announcement builds on CoreWeave’s exponential momentum and growth, evidenced by over $12 billion raised from equity and debt investors over the last 12 months. This includes a landmark $1.1 billion Series C in May 2024 led by Coatue, and a $2.3 billion debt financing facility led by Blackstone and Magnetar in August 2023. The Company also recently announced its new European headquarters in London – alongside a commitment to invest $1.25 billion in the region. In 2023, CoreWeave more than quadrupled its data center presence from three to 14, and it anticipates doubling its data center footprint to 28 globally by the end of 2024.

“CoreWeave is building the infrastructure to power the AI innovations that are already changing how businesses operate in the global economy,” said Michael Intrator, CoreWeave CEO and co-founder. “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.”

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“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.”

“We are excited to lead one of the largest private credit financings in history. CoreWeave has established itself as a leading provider of critical infrastructure to support the AI revolution and we’re looking forward to partnering with the company on its growth journey,” added Brad Marshall, Global Head of Private Credit Strategies at Blackstone.

“As the first institutional investor in CoreWeave, we have witnessed firsthand their remarkable evolution from a small startup to a go-to-market leader in advanced AI computing solutions,” said David Snyderman, Chief Investment Officer and Managing Partner at Magnetar. “Given their already substantial and expanding AI infrastructure capabilities, coupled with enhanced institutional backing, CoreWeave is exceptionally well-positioned to deliver high performance compute.”

The next era of computing will be driven by AI workloads that put tremendous demand on computational resources. CoreWeave is uniquely positioned to fill a void in the cloud market by delivering the high-power infrastructure that these market-leading AI products require. Trusted by top AI labs and enterprises, CoreWeave Cloud uses software and automation to deliver an efficient and performant infrastructure tailored to meet the specific needs of AI engineers and innovators.

Source: PRNewsWire

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