CoreWeave turns to customer prepayments, shorter contracts to fund AI growth
CoreWeave expects about $9 billion in customer prepayments and deposits over the next three months.
More than $3 billion would come from new contracts for capacity already built, requiring no additional hardware spending. The company plans to finance most remaining construction with loans backed by customer contracts, avoiding unsecured debt at current yields. Short-term deals are fetching more than $40 million per megawatt annually, versus $20 million to $25 million for new infrastructure on four- and five-year contracts. Those higher prices bring greater renewal risk, while lenders favor longer contracts with predictable cash flows.
TechCrunch AI's note
More than $3 billion would come from new contracts for capacity already built, requiring no additional hardware spending. The company plans to finance most remaining construction with loans backed by customer contracts, avoiding unsecured debt at current yields. Short-term deals are fetching more than $40 million per megawatt annually, versus $20 million to $25 million for new infrastructure on four- and five-year contracts. Those higher prices bring greater renewal risk, while lenders favor longer contracts with predictable cash flows.
TechCrunch AI's note
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