Aug 3 (Reuters) - Specialized cloud provider CoreWeave has raised $2.3 billion in a debt facility led by Magnetar Capital and Blackstone (BX.N) and collateralized by Nvidia chips, with the funds to be used to expand to meet rising AI workload, the company said on Thursday.
Nvidia-backed CoreWeave has seen a boost from the generative AI boom thanks to its purpose-built cloud infrastructure at scale.
The company has unique access to the most advanced Nvidia chips that are in short supply, giving it an edge in competition with traditional cloud providers like Microsoft (MSFT.O), Amazon (AMZN.O) and Google (GOOGL.O), which are facing supply restraints while working on developing their own chips.
The new financing will be used to acquire more graphics processing units, invest in data centers and hiring, the company said.
It announced an $1.6 billion data center in Texas last week and aims to expand to 14 in the U.S. by year end.
CoreWeave also raised $421 million in equity this year led by Magnetar Capital at a valuation of over $2 billion.