CoreWeave, a data center operator, is reportedly pursuing a $1.5 billion debt deal following an unsatisfactory initial public offering (IPO).
According to the Financial Times, CoreWeave is conducting a roadshow in collaboration with JPMorgan bankers to explore debt options. Company executives aim to use these meetings to assess investor interest.
Based in New Jersey, CoreWeave went public in March with an initial fundraising target of $2.7 billion. However, the company had to reduce this target to $1.5 billion due to investor concerns over its substantial debt load and a declining market for AI infrastructure.
CoreWeave, whose clients include Microsoft, has raised $12.9 billion in debt over the past two years to develop data centers. As of December 2024, the company reported having approximately $8 billion in total debt and faces debt and interest payments amounting to $7.5 billion by the end of 2026, as previously noted by the Financial Times.
TechCrunch has reached out to CoreWeave for comments.
