CoreWeave Seeks $1.5 Billion Debt Deal Following Disappointing IPO Performance

Data center operator CoreWeave is reportedly exploring a $1.5 billion debt deal after its initial public offering (IPO) fell short of expectations. According to the Financial Times, CoreWeave is currently holding a series of meetings with bankers from JPMorgan to assess potential debt financing options. These discussions aim to gauge investor interest and secure additional funds. Based in New Jersey, CoreWeave launched its IPO in March with an ambitious goal of raising $2.7 billion. However, due to concerns among investors about its substantial debt and a less favorable market for artificial intelligence (AI) infrastructure, the company had to reduce its target to $1.5 billion. Over the past two years, CoreWeave has taken on significant financial obligations, securing $12.9 billion in debt to construct and expand its data center operations. As of December 2024, the company reported a total debt of approximately $8 billion, with upcoming debt and interest payments totaling $7.5 billion by the end of 2026. CoreWeave's customers include major tech giants like Microsoft, underscoring the company's strategic importance in the AI infrastructure sector. Despite this, the company's financial situation remains a critical challenge, prompting its current efforts to secure additional capital through debt financing. TechCrunch has reached out to CoreWeave for a comment on this matter.