{"id":1168141,"date":"2023-08-04T08:30:00","date_gmt":"2023-08-04T12:30:00","guid":{"rendered":"https:\/\/www.prime-wow.com\/?p=1168141"},"modified":"2023-08-04T08:30:00","modified_gmt":"2023-08-04T12:30:00","slug":"cloud-provider-gets-2-3-billion-debt-using-nvidias-h100-as-collateral","status":"publish","type":"post","link":"https:\/\/www.prime-wow.com\/?p=1168141","title":{"rendered":"Cloud Provider Gets $2.3 Billion Debt Using Nvidia's H100 as Collateral"},"content":{"rendered":"

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CoreWeave, an Nvidia-backed\u00a0cloud\u00a0service provider\u00a0specializing in GPU-accelerated services, has secured a\u00a0debt facility\u00a0worth $2.3 billion\u00a0using Nvidia’s H100-based hardware as collateral. The company intends to use the funds to procure more compute GPUs and systems from Nvidia, construct new data centers, and hire additional personnel to\u00a0meet the growing needs for AI\u00a0and HPC\u00a0workloads.<\/p>\n


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CoreWeave\u00a0has\u00a0reaped enormous benefits\u00a0from the rise in generative AI\u00a0due to its\u00a0large-scale cloud infrastructure\u00a0as well as an exclusive relationship with Nvidia, and its ability to procure the company’s H100 compute GPUs as well as HGX H100 supercomputing platforms amid shortages of AI and HPC hardware. Since\u00a0many AI and HPC applications\u00a0used nowadays\u00a0were\u00a0developed\u00a0for Nvidia’s CUDA platform\u00a0and API,\u00a0they require Nvidia’s GPUs. Therefore, access to H100 gives CoreWeave a competitive edge over\u00a0traditional\u00a0CSPs\u00a0like AWS, Google, and Microsoft.<\/p>\n


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In addition to offering its customers access to advanced hardware,\u00a0CoreWeave collaborates with AI startups and major\u00a0CSPs \u2014 which are essentially its competitors \u2014\u00a0to build clusters that power AI workloads. These\u00a0rivals\u00a0\u2014 AWS and Google \u2014 have their own processors for AI workloads, and they continue to develop new ones. Still, given the dominance of CUDA, they have to offer Nvidia-powered instances to their clients and are currently\u00a0grappling with Nvidia GPU supply limitations.<\/p>\n


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CoreWeave’s competitive advantage, facilitated by access to Nvidia’s latest hardware, is a key factor in the company’s ability to secure such\u00a0substantial credit lines from companies like\u00a0Magnetar Capital,\u00a0Blackstone,\u00a0Coatue, DigitalBridge, BlackRock, PIMCO, and Carlyle.\u00a0Meanwhile, CoreWeave has already gotten\u00a0$421 million from Magnetar at a valuation exceeding $2 billion.<\/p>\n


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Notably, this is\u00a0not\u00a0the first\u00a0example\u00a0of an Nvidia-supported startup reaping substantial benefits from its association with the tech giant. Last month, Inflection AI\u00a0built\u00a0a supercomputer\u00a0worth hundreds of millions of dollars\u00a0powered by 22,000 Nvidia H100 compute GPUs.<\/p>\n


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Meanwhile, this is the first time Nvidia’s\u00a0H100-based hardware\u00a0was used as collateral, emphasizing these processors’ importance in the capital-intensive AI and HPC cloud business.\u00a0Moreover, this\u00a0massive\u00a0loan indicates the growing market for private asset-based financing\u00a0secured by\u00a0actual\u00a0physical assets.<\/p>\n


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“We negotiated with them to find a schedule for how much collateral to go into it, what the depreciation schedule was going to be versus the payoff schedule,<\/em>” said\u00a0Michael Intrator, CoreWeave’s CEO. “For us to go out and to borrow money against the asset base is a very cost-effective way to access the debt markets.”<\/p>\n


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The company recently announced a $1.6 billion data center in Texas and plans to expand its presence to 14 locations within the U.S. by the end of\u00a02023.<\/p>\n


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Source:\u00a0Reuters<\/a><\/p>\n


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\nSource: AnandTech – Cloud Provider Gets .3 Billion Debt Using Nvidia’s H100 as Collateral<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

CoreWeave, an Nvidia-backed\u00a0cloud\u00a0service provider\u00a0specializing in GPU-accelerated services, has secured a\u00a0debt facility\u00a0worth $2.3 billion\u00a0using Nvidia’s H100-based hardware as collateral. The company intends to use the funds to procure more compute GPUs and systems from Nvidia, construct new data centers, and hire … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":1168142,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[93,110],"tags":[94],"class_list":["post-1168141","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-anandtech","category-unfiltered-rss","tag-anandtech"],"_links":{"self":[{"href":"https:\/\/www.prime-wow.com\/index.php?rest_route=\/wp\/v2\/posts\/1168141","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.prime-wow.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.prime-wow.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.prime-wow.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.prime-wow.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1168141"}],"version-history":[{"count":0,"href":"https:\/\/www.prime-wow.com\/index.php?rest_route=\/wp\/v2\/posts\/1168141\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.prime-wow.com\/index.php?rest_route=\/wp\/v2\/media\/1168142"}],"wp:attachment":[{"href":"https:\/\/www.prime-wow.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1168141"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.prime-wow.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1168141"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.prime-wow.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1168141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}