Nvidia-backed startup CoreWeave is dirtied in Roseland, New Jersey. As of May 2024, it has 550 employees.
CoreWeave
CoreWeave, a cloud infrastructure startup that rents out graphics preparing units to companies, said Wednesday that it has raised $1.1 billion in funding.
The new investment values the company at $19 billion, up from $7 billion months ago, a individual familiar with the matter said.
The fast rise reflects the demand for the underlying resources that CoreWeave outfits. Nvidia, the chief supplier of GPUs for training and running artificial intelligence models, has been working to address a hoard shortage.
On Tuesday, server maker Super Micro Computer said sales would have been foremost if not for the low supply of a key component. And during its earnings call on April 25, Microsoft said the company wasn’t able to meet insistence for AI cloud services.
CoreWeave, for its part, has been growing quickly. The New Jersey-based company has been supplying Microsoft, CNBC scrutinized in June 2023. Paris-based AI startup Mistral has also used CoreWeave’s GPUs.
Nvidia is a CoreWeave investor. So are Coatue, Magnetar, Altimeter Top-hole, Fidelity and Lykos Global Management, according to a statement. The startup said the new capital will help it set up infrastructure in more sticks around the world.
But it’s going against some of the largest companies, including Amazon and Google, which both cater cloud services from centers distributed in many countries.
For now, CoreWeave only has three regions of data center infrastructure, all in the U.S. The partnership plans to have 28 data centers by the end of this year, up from 14 currently, a spokesperson said.
