CoreWeave Eyes 'Unlimited' Insurance Capital to Fuel AI Expansion as Debt Needs Grow, Co-Founder Says ‘You Have to Be Huge’
CoreWeave Inc. (NASDAQ:CRWV), backed by Nvidia Corp. (NASDAQ:NVDA), is pursuing insurance-industry capital as AI infrastructure expansion increasingly depends on debt financing.
Brannin McBee, CoreWeave’s co-founder, told the Financial Times, in an interview published on Wednesday, that the company is seeking access to insurers’ large investment pools to secure potentially cheaper funding. McBee said stronger investment-grade credit ratings could help the company borrow from insurers, whose capital "is unlimited."
The company is also considering whether insurers could buy loans backed by lower-rated customers, including AI labs. McBee said those transactions are not yet prepared for the insurance market.
CoreWeave is evaluating additional delayed-draw term loans to speed data-center construction and equipment purchases. McBee compared the approach with financing power plants through contracts sold in advance.
He said future stock-market listings by AI labs could improve their credit profiles, while CoreWeave continues targeting a position among the industry’s largest infrastructure providers.
"If we stop building today, [we’d be] immensely cash-flow positive," he said. But "we are in a period where you have to be huge. You have to be one of the biggest players,” McBee said.
CoreWeave’s financing strategy arrives as executives across the technology and financial sectors warn that capital availability could become a major constraint on AI infrastructure growth.
AI Boom Faces Funding Risks as Costs Rise
Co-founder McBee’s comments came as investor Chamath Palihapitiya questioned whether the AI boom is fueling a private-credit bubble after CoreWeave’s 2032 bond yield hit 15% before closing at a record 14.5%. He highlighted the growing reliance on debt, leases, and other financing, noting that U.S. direct lending surged from $96 billion in 2010 to $2.4 trillion in 2025. Technology firms accounted for $1.05 trillion, or 44%, of the 2025 direct-loan market, including more than $200 billion in loans to AI, big-data and cloud companies.
On Tuesday, Goldman Sachs CEO David Solomon said AI computing demand continues to outpace supply but warned that heavy financing needs could raise borrowing costs and threaten some projects. He warned that rising interest rates may squeeze returns and make financing harder for some projects. However, he said demand for computing capacity continues to outpace supply, supporting further construction and financing activity.
Earlier this week, Broadcom Inc. (NASDAQ:AVGO) CEO Hock Tan warned that access to capital could become a bigger constraint on AI infrastructure expansion than chip or electricity shortages, with computing demand potentially exceeding supply through 2029 or 2030. Intel Corp. (NASDAQ:INTC) CEO Lip-Bu Tan flagged high borrowing costs and uncertainty over whether AI investments will deliver sufficient returns to justify the spending.
Price Action: Year-to-date, CoreWeave’s shares have surged 8.66%, as per Benzinga Pro. In Wednesday’s pre-market session, the stock is trading 6.70% lower at $72.60.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock