CoreWeave, Specialized Cloud Provider, Raises $50 Million in New Capital from Magnetar

Investment helps company scale its specialized cloud offering following remarkable year of growth

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Nov 10, 2021, 09:05 ET

SPRINGFIELD, N.J., Nov. 10, 2021 /PRNewswire/ -- CoreWeave, a specialized cloud provider built for NVIDIA GPU-accelerated workloads, today announced it has raised $50 million from Magnetar Capital, a leading alternative investor based in Evanston, Ill., to scale its infrastructure. The news follows a year of incredible growth for CoreWeave, with its total revenues on pace to triple in 2021, and its cloud business growing 271% over the last 3 months alone.

Founded in 2017, CoreWeave offers industry-leading, scalable, on-demand computing resources for both proprietary and client use cases across the digital asset, machine learning, and VFX rendering spaces. Its leading infrastructure, unparalleled scale across the broadest selection of NVIDIA GPUs, and specialized DevOps expertise give clients the flexibility and freedom they need to manage complex workloads.

"Legacy cloud providers make it extremely difficult to scale because they offer a limited variety of compute options at monopolistic prices," said Michael Intrator, CEO of CoreWeave. "With this new round of growth financing, CoreWeave will expand its offering to make high performance computing available at the industry's best performance-adjusted cost on a vastly broader scale."

CoreWeave, the first Elite Cloud Service Provider in the NVIDIA Partner Network, is purpose-built for complex, on-demand workflows, making it easy for clients to consume compute efficiently at scale. High performance computing fuels the world around us, empowering content creation for feature films and episodic television, artificial Intelligence, machine learning applications served on top of large language models, innovations in early-stage drug discovery, and real-time experiences in gaming engines. Delivered on top of the industry's fastest and most flexible cloud infrastructure, CoreWeave boasts the broadest range of high-end NVIDIA GPUs at the industry's best economics.

"On-demand computing is essential for many businesses as they balance their needs against resources," said Matthew McGrigg, Director of Global Business Development for Cloud and Strategic Partners at NVIDIA. "CoreWeave offers world-class solutions for businesses looking to deploy AI and data-driven applications around the world. This is a great validation of delivering NVIDIA solutions via the cloud"

AI innovators have accelerated their own growth by switching to CoreWeave, which has allowed them to reduce inference latency by 50 percent, serve requests 300 percent faster, and lower their costs by 75 percent. With cloud solutions providing competitive advantages across the entirety of the production pipeline, top-tier VFX and animation studios have accelerated artist workflows with highly configurable NVIDIA RTX Virtual Workstations and enabled faster iteration with virtually unlimited rendering capacity.

"One of the cornerstones of CoreWeave's business is empowering our clients to access scale compute resources that may be impossible to do elsewhere," said Brian Venturo, Chief Technology Officer of CoreWeave. "The closing of this investment round provides us the ability to increase the scale and breadth of our offerings, both in existing regions and new regions around the globe as we race to support the explosive growth in demand for accelerated compute."

Galaxy Digital, a leading diversified financial services and investment management company in the digital asset, cryptocurrency, and blockchain technology sectors, served as exclusive financial advisor to CoreWeave and sole placement agent for its financing round. As fundraising activity occurring throughout the cryptocurrency and digital assets sector continues to accelerate, Galaxy Digital's investment banking arm has increasingly focused on capital raising while providing the full suite of investment banking services throughout the life cycle of a transaction.

To read more about CoreWeave and this round of financing, visit blog.coreweave.com.

About CoreWeave:
CoreWeave is a specialized cloud provider, delivering a massive scale of accelerated compute resources on top of the industry's fastest & most flexible infrastructure. CoreWeave builds cloud solutions for compute intensive use cases - VFX / Rendering, Machine Learning & AI, Batch Processing, Pixel Streaming and Blockchain - that are up to 35x faster and 80% less expensive than the large, generalized public clouds.

SOURCE CoreWeave