By
Godfrey Benjamin
May 13th, 2024
With capital secured, CoreWeave is well-positioned to drive the AI industry to the next level in the coming years.
CoreWeave, a former Ethereum miner that now specializes in cloud infrastructure projects, has announced the closure of a Series B funding round with approximately $221 million at a valuation of about $2 billion. According to the announcement, the comatose Series B funding round was led by Magnetar Capital, a leading alternative asset manager, with contributions from Nvidia, and individual investors like Nat Friedman a former GitHub CEO and Daniel Gross a former Apple executive.
The company plans to use the raised capital to expand its specialized cloud infrastructure to enhance the booming artificial intelligence (AI) and machine learning industries. As a result, the company can compete with an upper edge with other top cloud computing services providers in the global market.
Founded in 2017, CoreWeave scaled to a respectable cloud infrastructure network during the Ethereum mining era. However, since the second-largest blockchain transitioned to a proof-of-stake consensus mechanism through the merge event last year, CoreWeave was forced to re-imagine its future growth prospects.
With the ever-growing need for seamless artificial intelligence (AI) technology by institutional investors, CoreWeave was reassured of a wide global market, moreover, raising $221 million in Series B is a huge accomplishment for any startup.
CoreWeave's growth is mindblowing.
But it's no surprise: training and inference are exploding, and they have an excellent product, fast-paced culture, and a very impressive list of customers.
I am proud to be investing, alongside @danielgross, @nvidia, and Magnetar. https://t.co/ayUMtCaggD
— Nat Friedman (@natfriedman) April 20, 2023
With capital secured, CoreWeave is well-positioned to drive the AI industry to the next level in the coming years.
“I kept hearing about CoreWeave from AI companies that were doing large-scale training and inference on them. If you are looking for a big H100 cluster, CoreWeave is a great bet, as they are building out massive capacity and have a great track record,” Friedman noted.
CoreWeave and the Market Outlook
According to CoreWeave CEO and co-founder Michael Intrator, the company’s future is well mapped out in accordance with the booming AI technology. Moreover, CoreWeave has inked several strategic partnerships including with Nvidia Corporation (NASDAQ: NVDA).
Notably, Nvidia recently unveiled its latest GPU, the NVIDIA H100 Tensor Core, along with the NVIDIA HGX H100 platform. As a result, CoreWeave announced during the NVIDIA GTC conference in March that its HGX H100 clusters are live and currently serving clients such as Anlatan, the creators of NovelAI. In addition to HGX H100, CoreWeave offers more than 11 NVIDIA GPU SKUs, interconnected with the NVIDIA Quantum InfiniBand in-network computing platform, currently available to customers only on demand and via reserved instance contracts.
“We’re thrilled to expand our collaboration with the team at NVIDIA. NVIDIA consistently pushes the boundaries of what’s possible in the field of technology, and their vision and guidance will be invaluable as we continue to scale our organization,” Intrator noted.