{"id":279145,"date":"2025-07-21T05:18:19","date_gmt":"2025-07-21T05:18:19","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/279145\/"},"modified":"2025-07-21T05:18:19","modified_gmt":"2025-07-21T05:18:19","slug":"ai-arms-race-heats-up-as-startups-borrow-billions-to-buy-nvidia-gpus-crown-equity-holdings-otccrwe-brookfield-asset-mgmt-nysebam","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/279145\/","title":{"rendered":"AI Arms Race Heats Up As Startups Borrow Billions To Buy Nvidia GPUs &#8211; Crown Equity Holdings (OTC:CRWE), Brookfield Asset Mgmt (NYSE:BAM)"},"content":{"rendered":"<p class=\"block core-block\">Amid rising infrastructure demands, AI startups like Crusoe Energy Systems are tapping large-scale credit lines, PitchBook <a href=\"https:\/\/pitchbook.com\/news\/articles\/ai-startups-gobbling-more-than-third-venture-debt-dollars-2025\" target=\"_blank\" rel=\"noopener\">reported<\/a>. Crusoe last month <a href=\"https:\/\/www.globenewswire.com\/news-release\/2025\/06\/11\/3097837\/0\/en\/Crusoe-Secures-750-Million-Credit-Facility-from-Brookfield-to-Accelerate-the-Development-of-Energy-First-AI-Factories.html\" target=\"_blank\" rel=\"noopener\">raised<\/a> a $750 million credit facility from Brookfield Asset Management BAM to expand its data centers and acquire more graphics processing units from Nvidia Corp. NVDA.<\/p>\n<p class=\"block core-block\">That deal reflects a broader trend in venture financing. AI and machine learning startups have secured an outsized share of venture debt so far, accounting for more than a third of the $30 billion deployed across the U.S. and Europe, according to PitchBook. That marks a significant increase from 2024, when such companies attracted 24.9%, or $22.9 billion, of total debt funding.<\/p>\n<p class=\"block core-block\"><strong>Don&#8217;t Miss:<\/strong><\/p>\n<ul>\n<li data-end=\"163\" data-start=\"0\"><strong data-end=\"43\" data-start=\"2\">Massive Demand &amp; Disruptive Potential<\/strong> \u2013 Boxabl has received interest for over 190,000 homes, positioning itself as a major disruptor in the housing market.<\/li>\n<li data-end=\"362\" data-start=\"164\"><strong data-end=\"206\" data-start=\"166\">Revolutionary Manufacturing Approach<\/strong> \u2013 Inspired by Henry Ford\u2019s assembly line, Boxabl\u2019s foldable tiny homes are designed for high-efficiency production, making homeownership more accessible.<\/li>\n<li data-is-last-node=\"\" data-end=\"542\" data-start=\"363\"><strong data-end=\"402\" data-start=\"365\">Affordable Investment Opportunity<\/strong> \u2013 With homes priced at $60,000, Boxabl is raising $1 billion to scale production, offering investors a chance to own a stake in its growth.<\/li>\n<\/ul>\n<p><img alt=\"\"  src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/07\/Paolo-and-Gali.jpg\"  decoding=\"sync\" loading=\"eager\" style=\"border:none;bottom:0;box-sizing:border-box;display:block;height:0;left:0;margin:auto;max-height:100%;max-width:100%;min-height:100%;min-width:100%;padding:0;position:absolute;right:0;top:0;width:0;object-fit:contain\"\/>Why Startups Are Turning to Debt Sooner<\/p>\n<p class=\"block core-block\">According to PitchBook, the shift toward debt financing is being driven by rising compute costs and high early-stage valuations in AI.\u00a0<\/p>\n<p class=\"block core-block\">&#8220;There are companies coming out of the gate with these large chunky seed rounds,&#8221; Silicon Valley Bank Managing Director, Early-Stage Startups Bo Ren told PitchBook. &#8220;But then there&#8217;s a Series A valuation drop-off because they can&#8217;t live up to the VC expectations.&#8221;<\/p>\n<p class=\"block core-block\">Ren said that many AI startups are turning to venture debt earlier in their lifecycle as they struggle to maintain growth targets set by their inflated early valuations.<\/p>\n<p class=\"block core-block\">Ren also cited infrastructure costs as a key factor: &#8220;Given the cost of compute, it&#8217;s very much like the price of gas, it just keeps going up and up. That&#8217;s where a lot of the venture debt conversations start,&#8221; she told Pitchbook.<\/p>\n<p class=\"block core-block\">PitchBook data shows that the median pre-money valuation for AI startups has climbed to $25 million so far this year, up from $15 million in 2024.<\/p>\n<p class=\"block core-block\"><strong>Trending: Named a TIME Best Invention and Backed by 5,000+ Users, Kara&#8217;s Air-to-Water Pod Cuts Plastic and Costs \u2014 <a href=\"https:\/\/www.benzinga.com\/money\/americans-spend-1000-per-year-on-plastic-water-bottles-kara-pod-gives-you-clean-drinking-water-by-pulling-moisture-from-the-air\" target=\"_blank\" rel=\"noopener\"><strong>And You Can Invest At Just $6.37\/Share<\/strong><\/a><\/strong><\/p>\n<p>Large Debt Deals Backed by GPUs<\/p>\n<p class=\"block core-block\">Several AI infrastructure startups have recently raised major venture debt deals to purchase high-performance chips.<\/p>\n<p class=\"block core-block\">Lambda Labs also raised a $500 million special-purpose financing vehicle, collateralized by GPUs it already owned, to expand its chip inventory.<\/p>\n<p class=\"block core-block\">GPU cloud provider CoreWeave\u00a0 CRWE, which recently went public, raised $2.3 billion in debt with similar terms, PitchBook reported. The loan was backed by the company&#8217;s Nvidia GPU stockpile.<\/p>\n<p class=\"block core-block\"><strong>See Also: This AI-Powered Trading Platform Has 5,000+ Users, 27 Pending Patents, and a $43.97M Valuation \u2014 <a href=\"https:\/\/www.benzinga.com\/money\/finally-a-fully-automated-trading-platform-for-individual-investors?\" target=\"_blank\" rel=\"noopener\"><strong>You Can Become an Investor for Just $500.25<\/strong><\/a><\/strong><\/p>\n<p>Some Lenders Are Cautious<\/p>\n<p class=\"block core-block\">&#8220;How long is the useful life of those chips? If it&#8217;s 10 years or even seven years, that makes sense,&#8221; CIBC Innovation Banking Executive Managing Director and Co-Head Paul McKinlay told PitchBook. &#8220;But if it&#8217;s two years, that starts to become a tougher proposition.&#8221;<\/p>\n<p>Venture Debt&#8217;s Rapid Expansion<\/p>\n<p class=\"block core-block\">PitchBook reported that total venture debt deployment reached $53.3 billion in 2024, a 94.5% increase from 2023. That growth was primarily fueled by later-stage startups preserving valuations amid slowing VC rounds.<\/p>\n<p class=\"block core-block\">In 2025, AI is driving the next wave of venture debt demand\u2014now extending to earlier-stage companies.<\/p>\n<p class=\"block core-block\"><strong>Read Next: Warren Buffett once said, &#8220;If you don&#8217;t find a way to make money while you sleep, you will work until you die.&#8221;<a href=\"https:\/\/www.benzinga.com\/money\/warren-buffet-make-money-when-you-sleep\" target=\"_blank\" rel=\"noopener\"><strong> <\/strong><strong>Here\u2019s how you can earn passive income with just $10.<\/strong><\/a><\/strong><\/p>\n<p class=\"block core-block\"><strong>Image: Shutterstock<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"Amid rising infrastructure demands, AI startups like Crusoe Energy Systems are tapping large-scale credit lines, PitchBook reported. Crusoe&hellip;\n","protected":false},"author":2,"featured_media":279146,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3163],"tags":[323,1942,24813,3826,3825,105194,105195,105196,3828,105197,53,16,15],"class_list":{"0":"post-279145","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-category-news","11":"tag-cms-wordpress","12":"tag-pageisbzpro-bz","13":"tag-symbol-bam","14":"tag-symbol-crwe","15":"tag-symbol-nvda","16":"tag-tag-news-access","17":"tag-tag-startups-access","18":"tag-technology","19":"tag-uk","20":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114889536542664833","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/279145","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=279145"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/279145\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/279146"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=279145"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=279145"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=279145"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}