CoreWeave, Inc. CRWV is reportedly lining up about $8.5 billion in new loans, using its multibillion dollar contracts with Meta Platforms META as collateral, a sign of just how expensive the AI infrastructure race has become.
According to Bloomberg, the company is in talks with a group of banks that includes Morgan Stanley (MS) and Mitsubishi UFJ Financial Group MUFG. The financing would be backed primarily by CoreWeave's $14.2 billion deal with Meta, along with another contract worth more than $5 billion. The loan package is expected to close in March, people familiar with the matter said. None of the companies involved have publicly commented.
The bigger picture is hard to ignore. AI cloud providers are burning through capital to secure GPUs, expand data centers and scale networking capacity. By borrowing against signed hyperscaler agreements, CoreWeave is effectively turning future revenue into present day firepower. That also suggests lenders are increasingly comfortable underwriting AI linked cash flows.
