Cloud Provider CoreWeave Secures $2.3 Billion Credit Line Using Nvidia GPUs as Collateral

CoreWeave, an Nvidia-backed cloud computing provider specializing in GPU-accelerated computing, has announced plans to expand its presence to 14 locations within the U.S. by year's end, including a new $1.6 billion data center in Texas.

To fund this expansion, CoreWeave secured a $2.3 billion credit line by offering its Nvidia H100 processors as collateral. The credit facility was provided by leading investment firms, including Magnetar Capital and Blackstone, with further contributions from Coatue, DigitalBridge, BlackRock, PIMCO, and Carlyle.

The substantial loan reflects the burgeoning market for private asset-based financing, as private equity firms increasingly opt for lower-risk lending secured by tangible assets.

CoreWeave's success largely stems from its access to the latest Nvidia GPUs, providing it with a competitive edge over traditional cloud providers such as AWS, Google, and Microsoft. This strategy is somewhat unusual as many of today's AI and HPC applications were designed for Nvidia's CUDA platform and therefore require Nvidia hardware to run.

Specializing in building cloud infrastructure to power AI workloads, CoreWeave's unique access to Nvidia resources positions it at the forefront of the AI cloud computing market.