• On April 20, specialized cloud provider CoreWeave announced that it had secured $221 million in a Series B funding round.
• This money will be used to expand its cloud infrastructure for computational workloads such as artificial intelligence, machine learning, visual effects, rendering and pixel streaming.
• CoreWeave ceased its Ethereum mining operations long before the Merge was completed.
CoreWeave Raises $221M in Series B Funding Round
On April 20th, specialized cloud provider CoreWeave announced that it had successfully secured $221 million in a Series B funding round. The raise was led by Magnetar Capital with contributions from NVIDIA and rounded out by Nat Friedman and Daniel Gross. In November 2021, CoreWeave also received an additional investment of $50 million from Magnetar Capital.
Funding Will Be Used To Expand Cloud Infrastructure
According to CoreWeave, the funds will be used to expand their cloud infrastructure for various computational workloads such as artificial intelligence (AI), machine learning (ML), visual effects (VE), rendering and pixel streaming. With this new influx of capital, CoreWeave is now on track to increase capacity and scale operations across these emerging technologies.
Ethereum Mining Operations Ceased Before Merge Upgrade
Founded in 2017, CoreWeave initially started as an Ethereum miner utilizing GPUs to verify transactions on the former proof-of-work blockchain protocol until September 2022 when Ethereum completed its Merge upgrade transitioning the network into proof-of-stake from the previous proof-of-work protocol. As a result of this transition, Ethereum mining became obsolete which prompted CoreWeave to cease their mining operations long before the Merge was even completed.
NVIDIA Support To Help Company Scale
The support from NVIDIA will help provide assistance in helping the company continue scaling up their GPU computational resources which are said to be “35 times faster and 80% less expensive” than competitor solutions according to CEO Michael Intrato.
Conclusion
This latest fundraising round for CoreWeave establishes them as one of the leading providers of cloud computing services specializing in AI/ML workloads while showing how important GPU technology has become across multiple industries today ranging from entertainment production all the way down to financial applications like cryptocurrency mining or asset tokenization projects.