freejokerpoker| Nvidia's "son" CoreWeave borrows another $7.5 billion to buy graphics cards to build 14 data centers this year

Source: financial Union

According to the latest news on Friday,FreejokerpokerJust two weeks ago, after completing a $1.1 billion equity financing, AI cloud computing startup CoreWeave followed by a round of debt financing of up to $7.5 billion, naturally to buy graphics cards.

(source: prnewswire)

According to the announcement, in addition to the VC round to participate in the Magnetar, participate in this financing is also Blackstone, Carlyle and other global asset management agencies. A spokesman for the company declined to respond to a question about whether the financing was secured by Nvidia graphics cards again.

Core competence: good relationship with Nvidia

As a background, CoreWeave started as a cryptocurrency mining company and later turned to cloud computing platform services. There is a high degree of similarity in the work to be done-buying Nvidia graphics cards in large quantities and then making the best use of math. Given that CoreWeave still takes care of Nvidia's business when the currency circle is bad, the relationship between the two has been settled years ago.

As the explosion of AI drives the demand for computing power, CoreWeave has also become a hot spot in the capital market. During the company's multiple fundraising over the past year, international giants such as Blackstone, PIMCO, BlackRock, Carlyle, Fidelity and JPMorgan Chase appeared collectively, and Nvidia became a shareholder in the company.

In the view of the capital market, one of the core competencies of CoreWeave is "good relationship with Nvidia", which can get a large number of H100 graphics cards when there is a serious shortage of graphics cards. What makes the market shout "can still play this way" is that in a $2.3 billion financing last summer, the company's collateral was H100 graphics card.

As an interlude, Microsoft, which suffers from not being able to buy a graphics card to provide numeracy for OpenAI, also signed a big contract with CoreWeave last year to buy numeracy.

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For Nvidia, the core value of supporting CoreWeave is to break the cloud computing market. Like Nvidia, which has a market capitalization of $2 trillion, the big three cloud computing companies in the United States (Amazon AWS, Microsoft Azure and Google Cloud) are all supercompanies. Therefore, supporting a "family" in the market has become a profitable strategy.

Wall Street also sees the potential for CoreWeave to become another cloud computing giant. The company was valued at just $7 billion in its financing round in December. Just five months later, the company announced another $1.1 billion round of financing on May 1st, which is said to have soared to $19 billion. The increase of $12 billion (about 86.6 billion yuan) in just five months can only be achieved on a few tracks such as AI.

(source: prnewswire)

The surge in valuations also corresponds to the rapid expansion of CoreWeave. In the past year alone, CoreWeave's data centres have expanded from 3 to 14, and the number of employees has quadrupled to more than 550.

The company expects the number of data centers to double to 28 this year. On Friday, CoreWeave announced that it would go out of the US and invest 1 billion pounds in the UK, with plans to open two data centres first this year and further expand by 2025.

Company founder: follow-up companies also need to seek financing

As for the $7.5 billion debt financing just finalised, Michael Intrator, chief executive of CoreWeave, said most of the new borrowing would be used to expand the data center, including the purchase of artificial intelligence chips and related infrastructure such as servers and network equipment. He expects $7.5 billion to be in place this year, after which the company will seek new financing.

As for Nvidia's (last year) investment, Intrator said it reflected the company's ability to execute the plan and quickly configure hardware for end customers. Brannin McBee, another co-founder of the company, also said that CoreWeave is already on a par with the industry's "supergiants" in AI computing, saying: "I don't think anyone would have expected another super-large cloud service provider to enter the market so soon."

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