CoreWeave raises $3B convertible debt, stock dips over 2% premarket
CoreWeave, the cloud company with NVIDIA in its corner, is raising $3 billion through convertible debt to ramp up its AI infrastructure.
The news made CoreWeave's stock dip more than 2% in premarket trading after a strong run earlier this year.
Deutsche Bank and Goldman Sachs are the banks managing the ATM program, and early buyers can grab an extra $500 million slice if they want.
The cash will help support operations and protect existing investors from dilution.
CoreWeave locks in $25B commitments
CoreWeave also announced it might sell up to 35 million shares, which could bring in about $2.92 billion, aiming to boost its credit standing.
On top of that, the company recently upped its power contracts (think: more energy for all those AI servers) and locked in over $25 billion in new business commitments this quarter.
It's all part of CoreWeave's plan to keep up with the exploding demand for AI services.