CoreWeave, an AI-focused cloud provider, has secured $650m in new minority investment through a secondary share sale to investors. This latest capital injection pushed its valuation to approximately $23bn, up from an estimated $7bn last year, according to Reuters, citing an undisclosed source with knowledge of the matter.
This new funding follows CoreWeave’s recent $650m credit facility, finalised last month, with JPMorgan Chase, Goldman Sachs, and Morgan Stanley as lead arrangers. The credit facility was in line with CoreWeave’s ambitious expansion of its global infrastructure and to enhance its cloud services, particularly for large-scale AI deployments.
“The support from some of the leading financial institutions and technology innovators demonstrates the strength of and confidence in our AI Cloud platform from the market,” said CoreWeave’s CEO and co-founder, Mike Intrator. “The recognition from both institutional and strategic investors underscores our position as a leading AI hyperscaler to build, train and serve some of the most significant AI workloads running today.”
Established in 2017, CoreWeave offers a cloud platform designed to handle high-performance computing needs for complex AI applications. The platform, which has been optimised for automation to improve efficiency, is engaged in delivering advanced software to drive the next wave of AI. It also enables customers to accelerate their AI initiatives and reduce time-to-market, said CoreWeave.
CoreWeave’s expansion plans
The company’s increased valuation reflects a surging interest in the cloud infrastructure sector, particularly as demand intensifies for platforms capable of supporting generative AI applications.
Expanding globally, CoreWeave has committed to investing $3.5bn across London and continental Europe. Last month, the company confirmed a further £750m investment into the UK to meet the growing demand for AI infrastructure. This follows the company’s previous £1bn investment earlier this year and the establishment of its European headquarters in London.
In August, it claimed to have become the first cloud provider to offer Nvidia’s H200 Tensor Core GPUs to clients. CoreWeave expects to have 28 operational data centres by the end of 2024, with plans for an additional 10 centres in 2025.
The company’s valuation increase highlights growing investor interest in AI technology firms, and there is widespread anticipation that CoreWeave may pursue an initial public offering (IPO) in 2025.
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