CoreWeave says Nvidia has its back on data center financing (www.businessinsider.com)

CoreWeave has announced a significant partnership with Nvidia, which will act as a guarantor for its data center leases, facilitating financing for CoreWeave's aggressive infrastructure expansion. This collaboration comes as CoreWeave plans to double its spending on AI infrastructure by 2026, with projections indicating over $30 billion in capital expenditures. The arrangement is similar to a recent lease guarantee made by Google for another AI infrastructure partner, illustrating a strategic alignment among major players in the tech sector to support the burgeoning AI market. The financial backing from Nvidia is crucial for CoreWeave as the costs associated with building AI infrastructure are substantial, and attracting lenders becomes easier with Nvidia's backing due to its strong credit rating. This partnership is expected to positively shift investor sentiment, contrasting with earlier concerns over CoreWeave's debt levels, which may rise to $38 billion by 2026. The outcome of CoreWeave's fourth-quarter earnings, set to be released soon, will be closely monitored, especially its progress towards its target of 850 megawatts of operational data center facilities, as its success hinges on realizing contracted revenue from a substantial backlog worth $55.6 billion.