CoreWeave launches US$3 billion convertible debt sale for AI infrastructure

Nvidia-backed CoreWeave plans to raise US$3 billion through a convertible debt offering to fund AI infrastructure. The neocloud also launched an at-the-market stock sale program for up to 35 million shares, potentially raising about US$2.92 billion.

Nvidia-backed CoreWeave said on Thursday it plans to raise US$3 billion through a convertible debt offering, highlighting the massive funding needs to support the AI infrastructure buildout. Shares of the neocloud were down more than 3 per cent in early trading. Through the last close, they have gained over 16 per cent so far this year.

Initial buyers of the debt may purchase up to an additional US$500 million. CoreWeave said it would use some of the money to protect against dilution and the rest would fund its operations.

It also launched an at-the-market stock sale program for up to 35 million shares, potentially raising about US$2.92 billion at Wednesday's closing price, though it will determine whether to sell shares based on market conditions. The ATM program, managed by Deutsche Bank, Goldman Sachs, J.P. Morgan and others, is part of CoreWeave's effort to move toward an investment-grade credit profile.

In the third quarter, CoreWeave said it signed short-term customer contracts for compute capacity priced at about US$40 million per megawatt on an annualized basis. It increased contracted power to about 4.2 gigawatts from 3.7 GW at the end of June.

In August, the company reported revenue backlog of US$104.2 billion in the second quarter, later disclosing more than US$25 billion in additional customer commitments signed early in the third quarter.