Specialized cloud provider CoreWeave has raised $2.3 billion in a debt facility led by Magnetar Capital and Blackstone and collateralized by Nvidia chips, with the funds to be used to expand to meet rising AI workload, the company said on Thursday.

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  • CoreWeave, a company that provides cloud services, has secured a $2.3 billion loan using Nvidia chips as security.
  • This large loan reflects a growing trend of securing loans with physical assets, especially when banks aren’t lending as much.
  • CoreWeave has grown quickly thanks to a boom in AI. It has special access to advanced Nvidia chips, which gives it an advantage over big cloud providers like Microsoft, Amazon, and Google.
  • CoreWeave will use the loan to buy more chips, build data centers, and hire more staff. It’s aiming to have 14 data centers in the U.S. by the end of the year.
  • Earlier this year, CoreWeave also raised $421 million in equity, pushing its value to over $2 billion.