Former Ethereum Mining Company CoreWeave Successfully Raises $221 Million
- CoreWeave raises $221 million in Series B funding round led by Magnetar Capital with participation from Nvidia, former GitHub CEO Nat Friedman, and ex-Apple exec Daniel Gross.
- It offers a range of Nvidia GPUs in the cloud for AI and machine learning, rendering, batch processing, and pixel streaming.
CoreWeave, a startup that began as an Ethereum mining venture, has raised $221 million in a Series B funding round. The round was led by Magnetar Capital and included participation from Nvidia, former GitHub CEO Nat Friedman, and ex-Apple exec Daniel Gross.
The company plans to use the funding to support its U.S.-based data center expansion, with the opening of two new centers this year and expanding its team. CoreWeave currently operates five data centers in North America.
The firm offers a range of Nvidia GPUs in the cloud for AI and machine learning, rendering, batch processing, and pixel streaming. According to the company, leading cloud providers like Google Cloud, Azure, and AWS have been unable to meet the demand for generative AI with their “legacy cloud infrastructure.” CoreWeave argues that the incumbents are not equipped to handle the demand for GPUs from thousands of new AI companies, particularly at CoreWeave’s lower prices.
CoreWeave’s hardware for inference is a leading industry solution that can “autoscale” within three seconds. They also offer newer instance products like Nvidia’s HGX H100 server platform. Aside from infrastructure, the startup differentiates itself with its accelerator program, which provides customers discounts, compute credits, and hardware resources on the cloud. With over 1,000 customers across verticals like machine learning and AI, CoreWeave is positioning itself for the next generation of innovative AI firms.
CoreWeave recognizes the demand for scalable and attainable capacity for the next generation of innovative AI firms. The new investment will lead to more efforts like this, including more customized solutions that can outperform legacy cloud providers. CoreWeave and its investors are confident that AI inference demand is about to explode, and the startup is preparing the infrastructure and culture to scale for this moment.
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