Nvidia-backed GPU cloud provider CoreWeave surges to $19 billion valuation

CoreWeave,
a
cloud
infrastructure
startup
that
rents
out
graphics
processing
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
person
familiar
with
the
matter
said.

The
fast
rise
reflects
the
demand
for
the
underlying
resources
that
CoreWeave
provides.


Nvidia,
the
chief
supplier
of
GPUs
for
training
and
running
artificial
intelligence
models,
has
been
working
to
address
a
supply
shortage.

On
Tuesday,
server
maker


Super
Micro
Computer
said
sales
would
have
been
higher
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
demand
for
AI
cloud
services.

CoreWeave,
for
its
part,
has
been
growing
quickly.
The
New
Jersey-based
company
has
been
supplying
Microsoft,

CNBC
reported
in
June
2023.
Paris-based
AI
startup
Mistral

has
also
used
CoreWeave’s
GPUs.

Nvidia
is
a
CoreWeave
investor.
So
are
Coatue,
Magnetar,
Altimeter
Capital,
Fidelity
and
Lykos
Global
Management,
according
to
a
statement.
The
startup
said
the
new
capital
will
help
it
set
up
infrastructure
in
more
places
around
the
world.

But
it’s
going
against
some
of
the
largest
companies,
including


Amazon
and


Google,
which
both
provide
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
company
plans
to
have
28
data
centers
by
the
end
of
this
year,
up
from
14
currently,
a
spokesperson
said.