CoreWeave Plans $3 Billion Convertible Debt Sale

Nvidia-backed CoreWeave said on September 17 it plans to raise $3 billion through a convertible debt offering, the latest sign of the massive funding requirements underpinning the artificial intelligence infrastructure buildout.

Shares of the neocloud fell more than 3 percent in early trading, though they have gained over 16 percent so far this year. Initial buyers of the debt may purchase up to an additional $500 million. CoreWeave said it would use some of the proceeds to protect against dilution, with the rest funding operations.

The company also launched an at-the-market stock sale program for up to 35 million shares, which could raise about $2.92 billion at Wednesday's closing price. CoreWeave said it will determine whether to sell shares based on market conditions. The program, managed by Deutsche Bank, Goldman Sachs, J.P. Morgan and others, is part of an effort to move toward an investment-grade credit profile.

Operationally, CoreWeave said it signed short-term customer contracts in the third quarter for compute capacity priced at about $40 million per megawatt on an annualized basis. It increased contracted power to roughly 4.2 gigawatts from 3.7 gigawatts at the end of June. In August, the company reported a revenue backlog of $104.2 billion for the second quarter, later disclosing more than $25 billion in additional customer commitments signed early in the third quarter.

The debt and equity moves reflect the scale of capital required to build and operate GPU-heavy data centres. CoreWeave competes with other AI cloud providers such as Nebius Group and Nscale, all of which are racing to secure power, chips and customers. The convertible offering gives the company flexibility to fund expansion without immediately diluting shareholders, though the stock sale program provides another avenue if market conditions allow.