What’s the most valuable sector right now? AI might have a shot at the title, with ChatGPT and other start-ups receiving tens of billions in funding. And now, just by association, CoreWeave, a cloud provider specialising in AI, has found itself with $200m!
Who Are CoreWeave?
CoreWeave has secured $200m funding from Magnetar Capital after being valued at $2bn. The cloud computing company plans on building six new data centres across America.
The company was once involved with cryptocurrency, but has more recently moved toward AI. The sector’s in the middle of what some are calling a “gold rush”, where several start-ups have raised over $12bn each, just this year. CoreWeave set itself up as a provider for these high-powered AI start-ups, competing with AWS and Microsoft Azure. It claims to be 35x faster and 80% cheaper than legacy providers.
CoreWeave will use this funding to further expand into the AI market, working on their specialised offering. It’s clear that Magnetar believes there is enough potential there to warrant the intervention. Only time will tell whether this AI “gold rush” is a momentary blip or if it’s set to be a long-standing financially powerful sector.
Magnetar chief operating officer Ernie Rogers said…
“By combining easy access to high-powered GPUs for training AI models with fast and flexible infrastructure and by focusing on a specific type of compute, CoreWeave continues to differentiate itself from other companies in the space. Magnetar believes CoreWeave sits in a sweet spot for enabling world-class results across a number of industries.”
Michael Intrator, CoreWeave CEO and co-founder explained “It is an incredible moment in time. From a demand standpoint, revenue and client scale, the rise has been exponential, and Magnetar has been an amazing partner from the beginning.
This huge $200m funding round will allow CoreWeave to further expand their offering for the AI market. Do you think this is a sound investment? Let us know in the comments!