<div id="readability-page-1"><div><div><p>Amid rising infrastructure demands, AI startups like Crusoe Energy Systems are tapping large-scale credit lines, PitchBook reported. Crusoe last month raised a $750 million credit facility from Brookfield Asset Management <span>BAM</span> to expand its data centers and acquire more graphics processing units from Nvidia Corp. <span>NVDA</span>.</p><p>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><p><strong>Don't Miss:</strong></p><ul> <li><strong>Accredited investors can claim pre-IPO shares of Mode Mobile for just $0.30</strong><strong>—with up to 120% bonus shares—before this Uber-style disruption hits the public markets</strong></li> <li><strong>$100k+ in investable assets? <strong>Match with a fiduciary advisor for free to learn how you can maximize your retirement and save on taxes</strong> – no cost, no obligation.</strong></li> </ul><div><p></p><h3>Pre-IPO Offer: Get A Piece Of A Nearly $5T Global Opportunity By Joining BOXABL As An Early Shareholder At Just $0.80/Share</h3><p></p><div><div><div><ul> <li><strong>Massive Demand &amp; Disruptive Potential</strong> – Boxabl has received interest for over 190,000 homes, positioning itself as a major disruptor in the housing market.</li> <li><strong>Revolutionary Manufacturing Approach</strong> – Inspired by Henry Ford’s assembly line, Boxabl’s foldable tiny homes are designed for high-efficiency production, making homeownership more accessible.</li> <li><strong>Affordable Investment Opportunity</strong> – 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> </ul> </div></div><div><p><span><img src="https://imageproxy.pbkrs.com/https://cdnwp-s3.benzinga.com/wp-content/uploads/2024/10/22181427/Paolo-and-Gali.jpg/query-YXV0bz13ZWJwJmRwcj0yJm9wdGltaXplPW1lZGl1bSZ3aWR0aD0yMzA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="460" height="306" original-src="https://imageproxy.pbkrs.com/https://cdnwp-s3.benzinga.com/wp-content/uploads/2024/10/22181427/Paolo-and-Gali.jpg/query-YXV0bz13ZWJwJmRwcj0yJm9wdGltaXplPW1lZGl1bSZ3aWR0aD0yMzA"/></span></p></div></div><div><div><p><span><b>Share Price: </b></span><span>$0.80 </span></p><p><span><b>Min. Investment: </b></span><span>$1,000 </span></p><p><span><b>Valuation: </b></span><span>$3.5B </span></p></div></div></div><h2>Why Startups Are Turning to Debt Sooner</h2><p>According to PitchBook, the shift toward debt financing is being driven by rising compute costs and high early-stage valuations in AI. </p><p>&#34;There are companies coming out of the gate with these large chunky seed rounds,&#34; Silicon Valley Bank Managing Director, Early-Stage Startups Bo Ren told PitchBook. &#34;But then there's a Series A valuation drop-off because they can't live up to the VC expectations.&#34;</p><p>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><p>Ren also cited infrastructure costs as a key factor: &#34;Given the cost of compute, it's very much like the price of gas, it just keeps going up and up. That's where a lot of the venture debt conversations start,&#34; she told Pitchbook.</p><p>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><p><strong>Trending: Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — <strong>And You Can Invest At Just $6.37/Share</strong></strong></p><h2>Large Debt Deals Backed by GPUs</h2><p>Several AI infrastructure startups have recently raised major venture debt deals to purchase high-performance chips.</p><p>Lambda Labs also raised a $500 million special-purpose financing vehicle, collateralized by GPUs it already owned, to expand its chip inventory.</p><p>GPU cloud provider CoreWeave  <span>CRWE</span>, which recently went public, raised $2.3 billion in debt with similar terms, PitchBook reported. The loan was backed by the company's Nvidia GPU stockpile.</p><h2>Some Lenders Are Cautious</h2><p>&#34;How long is the useful life of those chips? If it's 10 years or even seven years, that makes sense,&#34; CIBC Innovation Banking Executive Managing Director and Co-Head Paul McKinlay told PitchBook. &#34;But if it's two years, that starts to become a tougher proposition.&#34;</p><h2>Venture Debt's Rapid Expansion</h2><p>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><p>In 2025, AI is driving the next wave of venture debt demand—now extending to earlier-stage companies.</p><p><em><strong>Image: Shutterstock</strong></em></p></div></div></div>

NVDA

<p>AI Arms Race Heats Up As Startups Borrow Billions To Buy Nvidia GPUs</p>

- AI startups, including Crusoe Energy Systems, are increasingly utilizing large-scale credit lines to meet rising infrastructure demands, with Crusoe securing a $750 million credit facility from Brookfield Asset Management.  
- This trend reflects a significant rise in venture debt for AI and machine learning startups, which accounted for over a third of the $30 billion deployed in the U.S. and Europe, up from 24.9% in 2024.  
- The shift towards debt financing is driven by high compute costs and inflated early-stage valuations, prompting startups to seek venture debt earlier in their lifecycle.