Nvidia-backed cloud computing company CoreWeave has announced plans to raise $3 billion through a convertible debt offering, underscoring the massive capital requirements involved in expanding AI infrastructure.
Initial buyers of the debt will also have the option to purchase an additional $500 million. CoreWeave said part of the proceeds will be used to offset potential dilution, while the remaining funds will support its operations.
The company has also launched an at-the-market offering program for up to 35 million Class A shares. Based on Wednesday’s closing price, the offering could potentially raise around $2.92 billion. However, CoreWeave said it will decide whether and when to sell the shares depending on market conditions.
The company also disclosed that it signed short-term contracts for compute capacity in the third quarter at an annualized rate of approximately $40 million per megawatt. Its contracted power capacity increased to around 4.2 gigawatts, up from 3.7 gigawatts at the end of June.
CoreWeave reported a $104.2 billion revenue backlog in the second quarter. It later disclosed more than $25 billion in additional customer commitments signed early in the third quarter.
Earlier this year, Meta committed to spend $21 billion on AI cloud infrastructure from CoreWeave. This was in addition to a commitment for Meta to pay CoreWeave approximately $14.2 billion through December 14, 2031, with an option to extend the agreement through 2032 for additional cloud computing capacity.
