CoreWeave’s Latest Funding Round
On April 20, CoreWeave, a rising star in the cloud computing arena, announced it had successfully raised an impressive $221 million in a Series B funding round. This move sets the stage for the company to ramp up operations and expand its capacity across a range of emerging technologies.
Who’s Behind the Funding?
The funding was led by Magnetar Capital, a key player in investment. Notably, tech giant NVIDIA also joined the contributing party, alongside investment contributions from Nat Friedman and Daniel Gross, former entrepreneurs turned investors. Just a short while back in November 2021, CoreWeave raised $50 million from Magnetar, showcasing a trusted partnership.
The Plans for Expansion
According to CoreWeave, this hefty capital injection will be dedicated to enhancing its cloud infrastructure specifically for computational workloads, which include:
- Artificial Intelligence
- Machine Learning
- Visual Effects
- Rendering
- Batch Processing
- Pixel Streaming
Michael Intrato, the firm’s CEO and co-founder, expressed optimism about NVIDIA’s backing, indicating that it would be instrumental in helping CoreWeave scale its operations effectively.
From Miner to Cloud Infrastructure Leader
Founded in 2017, CoreWeave started its journey as an Ethereum mining operation, utilizing advanced graphics processing units (GPUs). According to the company, they offer computational services that are “35 times faster and 80% less expensive” than the competition. This performance advantage sets them apart in a crowded market.
The Shift Post Merge Upgrade
In September 2022, Ethereum underwent its much-anticipated Merge upgrade, transitioning from a proof-of-work to a proof-of-stake protocol. This transformation rendered traditional Ethereum mining—and the GPUs used in such activities—obsolete. Nonetheless, CoreWeave smartly pivoted away from mining operations long before the Merge, ensuring they remained ahead of the curve.
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