CoreWeave, an Nvidia-backed artificial intelligence (AI) cloud provider, is seeking to tap into the vast pools of capital managed by life insurers as it looks for more cost-effective ways to finance its rapid expansion. The company, which runs large clusters of Nvidia chips and rents computing power primarily to AI research labs and major technology firms, has been leveraging complex, debt-heavy financing strategies to fund the tens of billions of dollars it spends on AI infrastructure, including the acquisition of high-performance chips and building data centers.

Brannin McBee, a co-founder of CoreWeave who oversees the company’s financing, emphasized the potential of life insurers as a source of funding, describing their capital as “unlimited.” He explained that obtaining investment-grade ratings on a greater portion of CoreWeave’s chip-backed debt—and eventually rating the company itself—would open the door to borrowing from insurers, whose substantial funds make them a key target for borrowers seeking cheaper credit.

Since transitioning from a small cryptocurrency miner to a major AI cloud provider in the past four years, CoreWeave now operates more than 1.5 gigawatts (GW) of active power with plans to scale up to 8GW by 2030. To support this growth, the company has raised over $35 billion this year through a mix of chip-backed loans, high-yield bonds, convertible bonds, and share issuances. As of June, its total debt and lease obligations approached $52 billion.

CoreWeave pioneered chip-backed loans secured by Nvidia’s graphics processing units (GPUs) paired with long-term contracts, known as offtake agreements, to help assure lenders of future revenue. In one landmark deal in March, the company secured an $8.5 billion loan backed by chips and a contract with Meta, which was awarded an investment-grade rating—the first such rating for chip-backed financing of this kind. The strategy has drawn comparisons to financing methods used in the energy sector, where future contracts are used as collateral to raise capital.

Despite this rapid borrowing, CoreWeave’s financial profile remains aggressive. The company’s interest expenses more than doubled from the previous year, reaching $640 million in the second quarter, while its debt stood at 5.8 times its annualized earnings before interest, tax, depreciation, and amortization (EBITDA). Market analysts forecast the firm will see negative free cash flow ranging from $18 billion to $28 billion through 2028. S&P Global Ratings classifies CoreWeave’s financial risk as aggressive.

McBee expressed confidence that the company could achieve investment-grade status within a few years, even amid these challenges. The firm is also exploring participation in Nvidia’s recently announced $500 billion financing program initiated with partners including Goldman Sachs, which aims to bolster the AI infrastructure sector.

CoreWeave’s relationship with Nvidia remains central to its growth. Nvidia has invested over $2 billion in the company, secured a $6.3 billion agreement to purchase CoreWeave’s unused computing capacity, and anchored the company’s initial public offering. The firm’s CEO, Jensen Huang, and his personal foundation have also provided substantial support, including donating computing time. However, McBee rejected suggestions that CoreWeave’s financing relies on circular arrangements with Nvidia, stating that Nvidia’s direct funding only accounts for a fraction of the tens of billions raised.

Critics have raised concerns about CoreWeave’s debt-heavy approach and potential vulnerability to shifts in AI demand, while McBee countered that the company’s real value lies not just in access to Nvidia chips, which he considers “table stakes,” but in CoreWeave’s proprietary cloud software and infrastructure.

Demand for AI cloud computing remains strong, with CoreWeave reportedly having sold nearly all its capacity through 2027 and actively securing contracts extending into 2028 and beyond. Meanwhile, three of the company’s co-founders have sold approximately $2 billion in shares this year, though McBee noted that much of their wealth remains tied to CoreWeave’s stock.