Data center operator CoreWeave is reportedly pursuing a $1.5 billion debt financing deal following its lackluster initial public offering (IPO). The company, headquartered in New Jersey, recently initiated a series of investor meetings led by JPMorgan to explore options and gauge market appetite for the substantial debt injection.
Initially aiming for a much higher raise of $2.7 billion, CoreWeave scaled back its ambitions unavoidably to $1.5 billion amid mounting investor concerns about the company’s debt profile and softness in the demand for AI-focused infrastructure. These market apprehensions contributed significantly to the company’s disappointing IPO performance earlier this March.
Over the past two years, CoreWeave has amassed $12.9 billion in debt, largely fueled by the development of expansive data center capabilities. Its balance sheet reported roughly $8 billion of outstanding debt as of December 2024, and the firm now faces looming financial obligations totaling about $7.5 billion in repayments and interest by the end of 2026.
CoreWeave provides data center solutions serving customers including major names such as Microsoft. The company declined to comment on the latest developments.
