• CoreWeave raised $221M in Series B funding round, led by Magnetar Capital with contributions from NVIDIA.
• The money will be used to expand its cloud infrastructure for computational workloads such as AI and ML.
• CoreWeave had previously ceased its Ethereum mining operations before the Merge upgrade was completed.
CoreWeave Raises $221M in Series B Funding
CoreWeave, a specialized cloud provider, has secured $221 million in a Series B funding round led by Magnetar Capital with contributions from NVIDIA. This raise puts the company on track to expand operations and increase capacity in various emerging technologies.
Funding to Expand Cloud Infrastructure for Computational Workloads
The money raised will be used to expand CoreWeave’s cloud infrastructure for computational workloads such as artificial intelligence (AI), machine learning (ML), visual effects, rendering, batch processing and pixel streaming. According to CoreWeave’s CEO and co-founder Michael Intrato, NVIDIA’s support will help the company continue to scale.
CoreWeave History
Founded in 2017, CoreWeave uses cloud technology to scale graphics processing unit (GPU) computational resources that are 35 times faster and 80% less expensive than competitor solutions. At the outset of the company’s launch it was an Ethereum miner utilizing GPUs to verify transactions on the former proof-of-work blockchain.
Ethereum Upgrade Rendered Mining Obsolete
In September 2022, Ethereum completed its much anticipated Merge upgrade transitioning the network into proof-of-stake from the previous proof-of-work protocol; rendering Ethereum mining obsolete and GPUs unnecessary for verifying transactions on the network. As a result of this change CoreWeave had already ceased its Ethereum mining operations long before this upgrade occurred.
Conclusion
With this new influx of funds from investors like Magnetar Capital and NVIDIA, Coreweave is well positioned to further grow their cloud infrastructure capabilities focused on areas such as AI/ML development as well as visual effects rendering and batch processing services