CoreWeave plans to finance at least $4 billion through investment-grade loans to purchase NVIDIA chips

According to Bloomberg, AI computing power cloud service provider CoreWeave is seeking to raise at least $4 billion through an investment-grade, asset-backed loan led by Morgan Stanley.

The funds will be used to procure NVIDIA chips and other computing equipment for a contract with an investment-grade client, with an expected annual interest rate between 7% and 7.5%. CEO Michael Intrator previously stated that at current interest rates, the company would not finance through the unsecured bond market.