According to Reuters, CoreWeave is seeking an $8.5 billion loan from banks backed by a deal with Meta. CoreWeave plans to raise approximately $8.5 billion from banks including Morgan Stanley and Mitsubishi UFJ to expand Meta’s AI cloud computing infrastructure. The loan is backed by contracts with Meta totaling over $19 billion and is expected to be finalized in March. The company has expanded aggressively through debt in recent years and currently has total debt of approximately $14 billion. Its stock price has corrected by nearly 50% after surging following its IPO. This financing follows a GPU financing model, leveraging Meta’s creditworthiness to reduce costs. The cost of building AI infrastructure in the industry is expected to exceed $3 trillion, and related debt is growing rapidly.