CoreWeave – a specialized cloud provider built for large-scale GPU-accelerated workloads – announced recently an additional $200 million in funding from Magnetar Capital, a leading alternative asset manager. This funding extension comes just one month after the company announced $221 million in Series B funding, also led by Magnetar, bringing the total for the round to $421 million.
The boom in generative AI technology accelerated demand for CoreWeave’s specialized cloud infrastructure to train, serve inference and fine-tune models. And the company offers solutions purpose-built for compute-intensive workloads that are faster and less expensive than larger, more generalized cloud providers.
CoreWeave’s serverless orchestration layer makes it a great option for AI startups rushing to get a product to market, as teams can spin up workloads in as little as 5 seconds with increased portability, less overhead, and less management complexity.
Overall, generative AI remains a bright spot for investors and according to PitchBook data, about $1.7 billion was generated across 46 deals for generative AI startups in the first quarter of 2023 with an additional $10.68 billion worth of deals announced in the quarter but not yet completed.
KEY QUOTES:
“In my 25-year career, I’ve never been a part of a company that’s growing like this. It’s an incredible moment in time. From a demand standpoint, revenue and client scale, the rise has been exponential, and Magnetar has been an amazing partner from the beginning.”
— CoreWeave CEO and co-founder Michael Intrator
“By combining easy access to high-powered GPUs for training AI models with fast and flexible infrastructure and by focusing on a specific type of compute, CoreWeave continues to differentiate itself from other companies in the space. Magnetar believes CoreWeave sits in a sweet spot for enabling world-class results across a number of industries. We are proud to have been the lead investor for CoreWeave’s Series B funding round and its extension.”
— Ernie Rogers, Magnetar’s chief operating officer
