On November 11, according to a report by the UK's Financial Times, CoreWeave (CRWV.O) is preparing a multi-billion-dollar loan collateralized by chips in a move to gauge market appetite for AI financing. The loan will fund the purchase of Nvidia chips and other computing equipment to fulfill contracts with an unnamed investment-grade customer. CoreWeave executives said the loan will raise billions of dollars, with interest costs expected at approximately 7% to 7.5%—less than half the yield on its unsecured debt. Its recent publicly traded unsecured "junk" debt in the bond market yielded as high as over 15%. CEO Michael Intrator told analysts that, depending on the customer, chip-collateralized loans cover 70% to 100% of the cost of the equipment being financed. The company also expects to receive approximately $9 billion in customer prepayments and deposits over the next three months and will seek more such funding.