CoreWeave Launches $3 Billion Convertible Debt Sale

CoreWeave plans to raise $3 billion through a convertible senior notes offering, adding another major source of funding as the Nvidia-backed AI cloud infrastructure provider expands its computing capacity.

The company said on Thursday that it intends to sell $3 billion of convertible senior notes due in 2033 in a private offering to qualified institutional buyers. Initial purchasers will also have the option to buy up to an additional $500 million of notes. The securities are expected to mature on April 1, 2033, unless they are repurchased, redeemed or converted earlier.

CoreWeave said it expects to use part of the proceeds to fund capped call transactions designed to offset potential dilution from the convertible notes, with the remaining funds intended for general corporate purposes. The final interest rate and conversion terms will be determined when the offering is priced.

The debt offering comes alongside a separate equity financing program covering as many as 35 million Class A shares. Reuters reported that the share program could potentially raise about $2.92 billion based on CoreWeave’s closing stock price on Wednesday, although the company will decide whether to sell shares depending on market conditions.

The financing push reflects the enormous capital requirements associated with building AI infrastructure. CoreWeave said its contracted power capacity had increased to about 4.2 gigawatts as of August 11, up from roughly 3.7 gigawatts at the end of June. The company also reported more than $25 billion in additional customer commitments signed early in the third quarter, on top of a $104.2 billion revenue backlog reported for the second quarter.

CoreWeave has been rapidly expanding its data-center infrastructure to meet demand for AI computing, making access to capital an important part of its growth strategy. The company’s financing activity also comes as it works toward strengthening its credit profile.

CoreWeave shares fell more than 2% in premarket trading following the announcement, according to Reuters, although the stock had gained more than 16% so far this year through Wednesday’s close.

The new convertible debt and potential share sales give CoreWeave additional funding flexibility as it continues investing in the infrastructure required to serve the growing AI market.