Key facts
- CoreWeave plans to raise $3 billion through a convertible debt offering.
- Initial buyers of the debt may purchase up to an additional $500 million.
- CoreWeave launched an at-the-market stock sale program for up to 35 million shares.
- The company will use some of the debt money to protect against dilution and the rest to fund operations.
- CoreWeave signed short-term customer contracts for compute capacity priced at about $40 million per megawatt annualized.
- Contracted power increased to about 4.2 gigawatts from 3.7 GW at the end of June.
Nvidia-backed AI infrastructure provider CoreWeave announced on Thursday plans to raise $3 billion through a convertible debt offering, underscoring the significant capital required to support the expansion of artificial intelligence infrastructure. The company also launched an at-the-market (ATM) stock sale program, potentially raising an additional $2.92 billion based on Wednesday's closing price, with the decision to sell shares contingent on market conditions.
CoreWeave intends to use a portion of the proceeds from the debt sale to hedge against dilution, with the remainder allocated to fund its operations. The ATM program, managed by Deutsche Bank, Goldman Sachs, J.P. Morgan, and others, is part of CoreWeave's strategy to achieve an investment-grade credit profile. In the third quarter, the company secured short-term customer contracts for compute capacity at approximately $40 million per megawatt on an annualized basis, increasing its contracted power capacity to about 4.2 gigawatts from 3.7 GW at the end of June.