CoreWeave announced on Tuesday the completion of a $4.2 billion convertible bond sale, carrying a coupon rate higher than its comparable issuance in April. This raise marks an increase from the AI cloud provider's initial financing goal announced last week.

Last Thursday, the company stated its intention to raise $3 billion through the debt offering. By Friday, it had priced $3.7 billion in bonds, maturing in 2033 with a 2.875% coupon rate. An additional $500 million of the total issuance came from initial purchasers exercising their option to buy more bonds.

This latest transaction follows a $4 billion senior convertible note issuance by CoreWeave, Inc. in April, which matures in 2032 and carries a 1.75% coupon. With heavier debt supply and lingering market concerns over the AI capacity expansion wave, investors have adopted a more cautious stance on AI-related debt, driving up borrowing costs for companies.