Nvidia Backed AI Start-Up CoreWeave Lands New $1.1B Funding - What's On The Cards?

CoreWeave, a cloud-computing firm backed by NVIDIA Corp NVDA, has secured $1.1 billion in new funding, led by Coatue, with participation from Magnetar, who led the last primary round, as well as Altimeter Capital, Fidelity Management & Research Company, and Lykos Global Management.

The New Jersey-based company expects to use the new funding to support the growth across all areas of its business, and expansion into new geographic regions.

The substantial funding values CoreWeave at $19 billion, signaling strong demand for AI computation, reported The Wall Street Journal.

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The report noted that the company, specializing in AI-tailored cloud-computing, distinguishes itself from tech giants like Microsoft Corporation MSFT and Amazon.com Inc AMZN, focusing solely on AI-related services.

“CoreWeave continues to push forward as a provider of critical infrastructure in the development of AI, and the high caliber of investors who continue putting their trust in us validates the enormous opportunity we have to define the next generation of cloud computing,” said Mike Intrator, co-founder and CEO of CoreWeave.

In December 2023, CoreWeave closed a secondary investment of $642 million, following a $420 million primary led by Magnetar in April 2023.

In August 2023, CoreWeave secured a $2.3 billion debt financing facility. Also, CoreWeave increased its data center presence in the last year from three to 14 and quadrupled its employee headcount.

NVIDIA stock has gained more than 186% in the last 12 months. Investors can gain exposure to the stock via T-Rex 2X Long NVIDIA Daily Target ETF NVDX and ProShares Ultra Semiconductors USD.

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Price Action: NVDA shares are trading lower by 4.34% at $826.48 at the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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