CoreWeave Raises $1.1B to Advance Its AI Cloud Infrastructure

DateMay 30, 2024

Global AI hyperscaler CoreWeave with its ‘GPU Cloud’ has announced the successful acquisition of $1.1 billion in Series C funding. The newly secured funds are aimed at facilitating CoreWeave’s rapid expansion and meeting the soaring global demand for GPU-accelerated cloud infrastructure.

In highlighting the significance of this fundraising round, CoreWeave’s co-founder and CEO, Mike Intrator, said, “CoreWeave continues to push forward as a provider of critical infrastructure in the development of AI. The elite group of investors who keep believing in us attests to the great potential we have to shape the direction of cloud computing in the future.” He highlighted CoreWeave’s commitment to taking on the trickiest problems in high-performance computing. The company intends to maintain its partnerships with significant AI companies across the globe with this additional investment.

This substantial investment round was spearheaded by Coatue, with significant contributions from Magnetar, Altimeter Capital, Fidelity Management & Research Company, Lykos Global Management, Blackstone, Eric Schmidt, and Jane Street Group. 

Catering to AI Workload Demand

“The elite group of investors who keep believing in us attests to the great potential we have to shape the direction of cloud computing in the future,” said CoreWeave’s co-founder and CEO, Mike Intrator.The burgeoning demand for AI-driven solutions across various industries would underscore the strategic necessity for robust and scalable infrastructure. Traditional cloud providers would often fall short in meeting the massive parallel processing power and memory requirements that AI workloads demand. CoreWeave’s infrastructure is specifically designed to cater to these needs, making it a preferred choice for leading AI labs and enterprises. The company’s cloud platform leverages automation to manage complexities, ensuring high performance and efficiency for AI applications.

Philippe Laffont, Founder & Portfolio Manager of Coatue, remarked on CoreWeave’s pivotal role in the AI revolution. He said, “We believe CoreWeave has emerged as a key leader in building the mission-critical infrastructure foundation required to satisfy society’s current and future demand for high-performance compute at scale. Since partnering in 2023, we have been impressed by the team’s commitment to operational and technical excellence, and we look forward to continuing our partnership as they drive the next phase of growth for the company and industry.”

This latest funding follows a series of significant financial milestones for CoreWeave. In December, the company closed a secondary investment of $642 million, following a $420 million primary investment led by Magnetar in April 2023. Additionally, in August, CoreWeave secured a $2.3 billion debt financing facility led by Magnetar and Blackstone. Over the past year, CoreWeave has significantly expanded its data center presence from three to 14 locations and has quadrupled its employee headcount.

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