Top Wall Street banks provide $650 million credit line to Nvidia-backed CoreWeave.

• Nvidia-backed AI startup CoreWeave announced on Friday that it has secured a $650 million credit line to expand its business and data center portfolio.
• In the past 18 months, the company has obtained $12.7 billion in funding from both equity and debt investors.
• Goldman Sachs, Morgan Stanley, and JPMorgan Chase were the main financiers, with assistance from Barclays, Citi, and Wells Fargo, among others.

CoreWeave, a startup backed by -, announced on Friday that it has secured a new $650 million credit line to expand its business and data center portfolio.

In the past 18 months, the cloud infrastructure company has obtained $12.7 billion in funding from equity and debt investors, including a $1.1 billion round in May at a $19 billion valuation.

CoreWeave aims to have 28 data centers globally by the end of 2024, including facilities in Austin, Chicago, Las Vegas, and London. Additionally, the company plans to construct 10 more data centers in 2025. Previously, CoreWeave provided graphics processing units (GPUs) to French AI startup Mistral.

In 2024, CoreWeave is projected to have $2 billion in revenue under contract.

Nvidia has been the go-to supplier for specialized chips used in building and training AI models, with most tech companies investing heavily in its products. In addition to providing the chips, Nvidia has also invested in emerging AI companies like CoreWeave to ensure its technology is widely adopted.

CoreWeave announced on Friday that it was led in financing by , with participation from Barclays, Citi, Deutsche Bank, Jefferies, Mizuho, MUFG, and Wells Fargo.

CoreWeave's co-founder and CEO, Mike Intrator, stated in a press release that this credit facility would provide additional liquidity to speed up their growth strategy and seize new opportunities in the rapidly changing AI industry.

Banks are positioning themselves for a share of the AI gold rush, with CoreWeave's new credit line being part of a broader trend. The generative AI market is projected to reach $1 trillion in revenue by 2032, according to one estimate.

OpenAI secured a $4 billion revolving line of credit last week, increasing its total liquidity to over $10 billion. This announcement followed the successful completion of its latest funding round at a valuation of $157 billion.

OpenAI has a credit line of $2 billion, with many of the same banks that contributed to it.

CoreWeave refused to disclose the interest rate and timeframe for the credit facility.

WATCH: Cisco to invest in CoreWeave