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Appaloosa Management opens new position in CoreWeave
CoreWeave is backed by Appaloosa as it expands its AI cloud and data center infrastructure, after raising more than $30 billion this year and closing a $2.6 billion term loan on Aug. 10.
David Tepper’s hedge fund Appaloosa Management has opened a new position in CoreWeave, adding another high-profile institutional investor to the AI infrastructure stack, according to Hedgeweek. CoreWeave is a US cloud infrastructure provider focused on AI computing, supplying the capacity needed by large AI models and other demanding workloads.
The investment highlights a shift among institutional investors toward the cloud and data center infrastructure layer of the AI ecosystem, rather than concentrating only on chip designers. Hedgeweek noted that CoreWeave’s market capitalization is about $58.1 billion.
Hedgeweek said CoreWeave is pursuing an aggressive expansion program backed by substantial debt and equity financing. The company has raised more than $30 billion so far this year, including a $2.6 billion delayed-draw term loan that closed on Aug. 10.
While the funding supports building out infrastructure and meeting demand for AI computing capacity, the report said it has also increased scrutiny on CoreWeave’s cash position and its ability to convert contracted backlog into revenue.