CoreWeave Seeks Insurance Capital to Cut AI Chip Financing Costs; Chip-Backed Funding Tops $35bn

MT Newswires Live12:51

NVIDIA-backed AI cloud provider CoreWeave, Inc. is courting insurance-company capital to lower financing costs for buying AI chips and building infrastructure. Management says if more chip-collateralized debt can secure investment-grade ratings and the firm can lift its own credit rating, it could access insurers’ large capital pools.

Earlier this year CoreWeave obtained an $8.5bn loan backed by NVIDIA chips and a long-term Meta usage contract. It plans to pitch insurers loans backed by lower-rated customers, including AI labs.

Year-to-date fundraising via chip-backed loans, high-yield bonds, convertibles and equity has exceeded $35bn; debt and lease obligations were about $52bn at end-June.

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