GPU cloud upstart CoreWeave gets $1.1B injection as AI hype train chugs on

AI cloud firm CoreWeave scored $1.1 billion in a recent investment round, bringing its valuation up to $19 billion.

The backers that furnished CoreWeave with over a billion dollars were led by investment firm Coatue and included others, most notably Fidelity, according to aCoreWeave's previous investment round was five months ago, and it received $642 million on the basis of a $7 billion valuation, so we're looking at a near tripling in value.

CoreWeave's business model is pretty simple: Buy Nvidia GPUs to rent out to companies through the cloud. As of November,22,000 H100 GPUs to power its datacenters. The $1.1 billion investment is for expanding CoreWeave's presence into Europe and other parts of the world, and likely buying up more GPUs, too. Founded in 2017, CoreWeave is based in New Jersey on the US East Coast.

Such a thing happening may not be unrealistic, as Meta CEO Mark Zuckerberg warned last week that AI investments willto transform into profits. The stock market didn't take the news very well, and Meta's share price is down about 11 percent since then. Stability AI may already be a real world example of this happening, as it paid $99 million in cloud computing costs to Amazon, Google, and CoreWeave to make just $11 million during 2023. The AI startup unsurprisinglyBut as long as the investments keep pouring in, CoreWeave has plenty of time and opportunity to make its GPU cloud rain, so to speak. ®Systems ApproachVideoWhat's up with AI lately? Let's start with soaring costs, public anger, regulations...

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