Vultr secures $329 million debt financing to enhance AI infrastructure capabilities
TOI World Desk | TIMESOFINDIA.COM | Jun 24, 2025, 01:08 IST
( Image credit : AP, TOIGLOBAL )
Vultr, a Florida-based cloud infrastructure provider, has secured $329 million in debt financing from major Wall Street banks to enhance its AI model hosting capabilities. This investment underscores growing confidence in AI infrastructure, as Vultr's favorable terms contrast with competitors like CoreWeave. With a focus on cost-effective cloud services and profitability, Vultr aims to expand its global AI compute access and compete with larger cloud providers.
As demand for artificial intelligence continues to drive seismic shifts across the tech industry, Florida-based cloud infrastructure provider Vultr has raised $329 million in new debt financing from a syndicate of major Wall Street banks. The funds will be used to bolster its capabilities in hosting and deploying AI models, further solidifying its position in the rapidly evolving AI infrastructure landscape.
The credit facility includes participation from Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, KeyBank, and Wells Fargo, according to a company statement released Monday. While Vultr did not disclose the exact interest rate, it noted that the terms are significantly more favorable than previous debt raises in the sector—a reflection of growing confidence from institutional lenders in AI-focused infrastructure.
“This financing came in hundreds of basis points below what others in the market are paying,” said Vultr CEO J.J. Kardwell in an interview with CNBC, pointing to the company’s stronger financial position and investor trust. The remark comes in contrast to rival CoreWeave, which raised $2 billion last month at a 9.25% annual interest rate—down from 14% in 2023 but still notably higher than Vultr’s latest deal.
Vultr’s move underscores a broader trend among smaller cloud providers competing with tech giants like Amazon and Microsoft, which are investing tens of billions annually to expand their global data center networks. Unlike those tech titans, mid-sized firms such as Vultr typically rely on external capital to scale operations, particularly in the high-demand realm of AI processing.
Founded in 2014 and headquartered in West Palm Beach, Florida, Vultr has carved out a niche by offering cost-effective cloud services to a growing base of over 1.5 million customers. Its 32 data center regions—most located outside the United States—support developers and businesses worldwide, many of whom pay just a few dollars per month.
In contrast to publicly traded CoreWeave, which reported a $314.6 million net loss in the first quarter of 2025 despite nearly $1 billion in revenue, Vultr claims to be profitable. That profitability, paired with a leaner capital structure, appears to be paying off in the debt markets. CoreWeave, which went public earlier this year and is backed by Nvidia, currently carries $8.7 billion in debt and a market cap of $88 billion—up more than fourfold since its IPO.
While Vultr competes with general cloud providers like DigitalOcean and Akamai’s Linode, its AI infrastructure ambitions align it more closely with CoreWeave. Both companies rent out high-performance AI chips from industry leaders like Nvidia and AMD. In December, Vultr closed a $333 million funding round featuring AMD as a strategic investor, giving the company a $3.5 billion valuation.
With the new debt secured, Vultr is expected to accelerate investments in GPU infrastructure and expand access to AI compute globally—a critical move as enterprises increasingly seek alternatives to the big three cloud providers.
As for what’s next, Kardwell said the company continues to evaluate a potential IPO but has yet to make a decision. “We’re always looking at our options,” he noted, “but we’re focused right now on executing our growth strategy.”
As the AI arms race intensifies, Vultr’s fresh capital injection and profitable foundation could offer it a strategic edge in a market that’s quickly becoming one of the most competitive—and capital-intensive—in tech.
The credit facility includes participation from Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, KeyBank, and Wells Fargo, according to a company statement released Monday. While Vultr did not disclose the exact interest rate, it noted that the terms are significantly more favorable than previous debt raises in the sector—a reflection of growing confidence from institutional lenders in AI-focused infrastructure.
“This financing came in hundreds of basis points below what others in the market are paying,” said Vultr CEO J.J. Kardwell in an interview with CNBC, pointing to the company’s stronger financial position and investor trust. The remark comes in contrast to rival CoreWeave, which raised $2 billion last month at a 9.25% annual interest rate—down from 14% in 2023 but still notably higher than Vultr’s latest deal.
Vultr’s move underscores a broader trend among smaller cloud providers competing with tech giants like Amazon and Microsoft, which are investing tens of billions annually to expand their global data center networks. Unlike those tech titans, mid-sized firms such as Vultr typically rely on external capital to scale operations, particularly in the high-demand realm of AI processing.
Founded in 2014 and headquartered in West Palm Beach, Florida, Vultr has carved out a niche by offering cost-effective cloud services to a growing base of over 1.5 million customers. Its 32 data center regions—most located outside the United States—support developers and businesses worldwide, many of whom pay just a few dollars per month.
In contrast to publicly traded CoreWeave, which reported a $314.6 million net loss in the first quarter of 2025 despite nearly $1 billion in revenue, Vultr claims to be profitable. That profitability, paired with a leaner capital structure, appears to be paying off in the debt markets. CoreWeave, which went public earlier this year and is backed by Nvidia, currently carries $8.7 billion in debt and a market cap of $88 billion—up more than fourfold since its IPO.
While Vultr competes with general cloud providers like DigitalOcean and Akamai’s Linode, its AI infrastructure ambitions align it more closely with CoreWeave. Both companies rent out high-performance AI chips from industry leaders like Nvidia and AMD. In December, Vultr closed a $333 million funding round featuring AMD as a strategic investor, giving the company a $3.5 billion valuation.
With the new debt secured, Vultr is expected to accelerate investments in GPU infrastructure and expand access to AI compute globally—a critical move as enterprises increasingly seek alternatives to the big three cloud providers.
As for what’s next, Kardwell said the company continues to evaluate a potential IPO but has yet to make a decision. “We’re always looking at our options,” he noted, “but we’re focused right now on executing our growth strategy.”
As the AI arms race intensifies, Vultr’s fresh capital injection and profitable foundation could offer it a strategic edge in a market that’s quickly becoming one of the most competitive—and capital-intensive—in tech.