CoreWeave is close to securing $8.5 billion in guaranteed financing for the "AI Chips + Meta contract."

AI cloud computing company CoreWeave is seeking a new round of large-scale debt financing to solidify its position in the increasingly competitive AI infrastructure market.

According to The Information, citing informed sources, CoreWeave is close to completing a debt financing totaling $8.5 billion. This financing will be secured by the AI chips held by the company and the cloud service procurement contracts signed with Meta Platforms. Informed sources indicate that the interest rate for this financing is expected to be around 6%, significantly lower than the company's past financing costs. CoreWeave's previously issued debt had interest rates as high as double digits, and the financing conditions have improved significantly.

This new debt is expected to receive an A- rating from credit rating agencies, making it CoreWeave's first chip-secured debt to obtain a formal credit rating. The acquisition of an A- rating signifies an enhancement in the company's credit recognition in the capital markets, helping it further broaden its financing channels and attract institutional investors with specific credit rating requirements.

According to informed sources cited by The Information, Morgan Stanley and Mitsubishi UFJ Financial Group (MUFG) will participate in the subscription of this debt and will allocate the remaining portion to other institutional investors.

CoreWeave plans to release its financial report this week. Informed sources state that the company is continuously expanding its debt financing scale to compete for market share against established cloud service providers such as Amazon, Microsoft, and Google, while also addressing challenges posed by emerging competitors offering AI chip rental services to developers.

Using Meta's cloud service contracts as underlying collateral not only highlights the increasingly deepening binding relationship between leading technology companies and AI infrastructure providers but also provides a more compelling credit endorsement for CoreWeave's debt.

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