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CoreWeave nets $1.1B to foster growth in AI-focused cloud computing: Reported $19.1B valuation

CoreWeave nets $1.1B to foster growth in AI-focused cloud computing Reported $19.1B valuation
Image credit: CoreWeave

CoreWeave, a company specialising in cloud infrastructure for artificial intelligence (AI), has secured $1.1 billion in Series C funding. This latest round was led by Coatue, with participation from existing investor Magnetar, along with Altimeter Capital, Fidelity Management & Research Company, and Lykos Global Management.

The new funds will be used to fuel CoreWeave’s growth across various areas of its business. A key focus will be expanding into new geographic regions to meet the surging global demand for cloud infrastructure specifically designed to accelerate GPU (Graphics Processing Unit) performance.

“CoreWeave continues to be a critical infrastructure provider for AI development,” said Mike Intrator, co-founder and CEO of CoreWeave, in a press release. “The calibre of investors who continue to trust us validates the immense opportunity we have to shape the next generation of cloud computing.” He further emphasised CoreWeave’s commitment to “working with the largest AI enterprises in the world” by investing in solutions designed to tackle complex high-performance computing challenges.

Just last month, we also reported about Apple, Intel, NVIDIA, and Tesla veterans, who spearheaded efforts to redefine AI computing with $30M funding.

Addressing the growing need for specialised AI infrastructure

The increasing adoption of AI across various industries is fueling the demand for powerful and scalable infrastructure. Businesses recognize the potential of AI to boost efficiency, enhance productivity, unlock revenue streams, and reduce costs. This, coupled with the strategic benefits of growth and innovation, is driving organisations of all sizes to deploy large-scale AI solutions. 

However, traditional cloud providers offer generalised infrastructure that isn’t built to handle the massive parallel processing power and memory demands of AI workloads.

CoreWeave’s cloud solution tailored for AI workloads

CoreWeave addresses this gap by offering cloud infrastructure designed specifically for AI engineers and innovators. Trusted by leading AI labs and enterprises, CoreWeave Cloud leverages automation to manage complexity and deliver the most efficient and performant cloud infrastructure for AI workloads.

CoreWeave’s leadership in AI infrastructure

Philippe Laffont, Founder & Portfolio Manager of Coatue, a new investor in CoreWeave, expressed his belief in the company’s leadership position. “We believe CoreWeave has emerged as a key leader in building the critical infrastructure foundation needed to support society’s growing demand for high-performance computing at scale, powering the generative AI revolution,” Laffont stated in the press release. He further highlighted CoreWeave’s commitment to operational and technical excellence, and their enthusiasm for supporting the company’s future growth.

Recent growth trajectory

This Series C funding comes on the heels of a significant growth period for CoreWeave. In December 2023, the company closed a secondary investment of $642 million, following a $420 million primary round led by Magnetar in April 2023. Additionally, CoreWeave secured a $2.3 billion debt financing facility led by Magnetar and Blackstone in August 2023.

The company has also demonstrably expanded its physical footprint and workforce. In the past year, CoreWeave has grown its data centre presence from three to 14 locations and quadrupled its employee headcount.

Perhaps most significantly, this latest funding round shows CoreWeave’s impressive valuation. Reportedly, according to a source familiar with the deal, the preferred equity transaction involving existing investors Coatue Management and Magnetar Capital is set to convert at a post-money valuation of about $19.1 billion. 

This represents more than double CoreWeave’s $7 billion valuation from last year and surpasses the $16 billion valuation discussed in March 2024. This substantial increase in valuation reflects the growing investor confidence in CoreWeave’s position as a leader in the AI-focused cloud computing market.

CoreWeave amidst the evolving AI cloud landscape

Founded in 2017 and headquartered in New Jersey, CoreWeave is positioned as a strong contender in the rapidly growing market for AI-specialised cloud computing solutions. 

With its recent funding and impressive growth trajectory, CoreWeave is well-equipped to capitalise on the increasing demand for powerful and efficient infrastructure to support the next generation of AI applications.

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