Leading Wall Street banks provide a $650 million credit line to Nvidia-backed CoreWeave

Nvidia-backed artificial intelligence firm CoreWeave, which leases processors to other businesses, said on Friday that it has secured a new $650 million credit line to broaden its range of commercial and data center offerings.

The cloud infrastructure startup reported that in the last 18 months, it has raised $12.7 billion from debt and equity investors, including a $1.1 billion round in May at a $19 billion valuation.

CoreWeave aims to have 28 data centers by the end of 2024, both domestically and internationally. These include sites in Austin, Texas, Chicago, Las Vegas, and London. In addition, the company expects to construct 10 more data centers by the year 2025. In the past, CoreWeave has provided graphics processing units, or GPUs, to Microsoft and the French AI firm Mistral.

According to reports as of last year, CoreWeave has contracts in place for $2 billion in revenue by 2024.

Building and training AI models is infamously costly and requires hundreds of specialized processors, the most of which are produced by Nvidia at this time. The majority of IT businesses who are major participants in artificial intelligence, if not all of them, spend hundreds of thousands to billions of dollars on Nvidia processors in order to fuel their models. Apart from creating the processors, Nvidia has invested in nascent AI firms such as CoreWeave, partially to guarantee the widespread use of its technology.

The introduction of CoreWeave’s new credit line is a part of a larger trend in which banks are lining up to take a piece of the AI gold rush before several possible IPOs in the sector. One prediction states that the generative AI sector will generate more than $1 trillion in revenue by 2032.

With the $4 billion revolving line of credit it secured last week, OpenAI now has more than $10 billion in total cash. The announcement was made shortly after OpenAI’s most recent fundraising round, which was valued at $157 billion.