• CoreWeave has raised $221 million in Series B funding.
• The money will be used to expand its cloud infrastructure for AI, ML, and other computing workloads.
• CoreWeave stopped its Ethereum mining operations before the Merge Upgrade was completed.
CoreWeave Raises $221 Million in Series B Funding
CoreWeave, a cloud provider specializing in emerging technologies, announced on April 20 that it had secured $221 million in a Series B fundraising round. Lead investor Magnetar Capital was joined by NVIDIA and Nat Friedman and Daniel Gross to complete the round. This follows a $50 million investment from Magnetar Capital back in November 2021.
Funds Used To Expand Cloud Infrastructure
With this latest influx of funds, CoreWeave plans to expand its cloud infrastructure for computational workloads such as artificial intelligence (AI), machine learning (ML), visual effects, rendering, batch processing, and pixel streaming. Michael Intrato, CoreWeave’s CEO and co-founder expressed excitement at NVIDIA’s involvement which will help bring scalability to the company’s services.
Founded in 2017, CoreWeve uses cloud technology to scale GPUs for computations which are reportedly 35 times faster than competitors’ solutions and 80% less expensive too. Initially an Ethereum miner using GPUs to verify transactions on the proof-of-work blockchain network, Coreweave ceased operations long before Ethereum completed its Merge Upgrade transitioning it into a proof-of-stake protocol; rendering mining obsolete.
Cryptocurrency Industry Developing Rapidly
The cryptocurrency industry is developing rapidly; with Citi recently suggesting trillions of assets could potentially become tokenized by 2030 thanks to Ethereum’s ZK-rollups becoming interoperable. Meanwhile Hong Kong has set a high bar for regulatory clarity with regards to crypto ETFs despite lukewarm demand from potential investors yet still remains positive about the future of cryptocurrencies overall.
All things considered; Coreweave’s recent fundraising success is certainly indicative of promise not just for their own business but also for wider developments within the cryptocurrency industry as a whole.