Odaily Planet Daily News: CoreWeave, an AI cloud service provider backed by NVIDIA, is seeking to attract the vast capital pools of insurance companies to reduce its financing costs for purchasing AI chips and building infrastructure. Brennan McBeath, CoreWeave’s co-founder and head of financing, said that if the company can secure investment-grade ratings for more debt secured by chips—and ultimately improve its own credit rating—it could gain access to the insurance capital market. He noted that the scale of insurance industry funds is “nearly limitless,” as “all money held in insurance capital pools is among the largest sources of capital in the world.”
Earlier this year, CoreWeave secured an $8.5 billion loan backed by NVIDIA chips and a long-term usage agreement with Meta. CoreWeave’s next step is to attract insurers to purchase loans supported by lower-credit-rated clients, such as those financing AI labs. Since the beginning of the year, the company has raised over $35 billion through chip-backed loans, high-yield bonds, convertible bonds, and equity offerings. As of the end of June, the company’s total debt and lease obligations amounted to approximately $52 billion. (Financial Times, UK)