CoreWeave turns to chip-backed loans as AI debt mounts

CoreWeave is angling for a massive loan using its chips as collateral. The up-and-coming AI cloud group is leaning heavily on this new funding stream as some of its existing corporate debt is still trading in distressed territory. CEO Michael Intrator asserted, “Looking ahead, we will not use the unsecured debt market to fund our business at current yields. Nor do we need to.” He insisted that, under current conditions, the chip-backed loan was an effective way to raise money. Investors have been keeping a very close eye on the company’s strategy for funding its infrastructure buildup. In the past few months, the firm’s stock and bonds have been hit hard by growing fears about the massive borrowing used to build its data centers.

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