CoreWeave Secures $200 Million Series B Extension, Bringing Total Round to $421 Million

May 31, 2023 at 07:00 AM EDT

Additional funding from Magnetar Capital comes one month after CoreWeave’s $221 Series B round close

CoreWeave’s specialized cloud infrastructure fills a need for computing power that legacy cloud providers are struggling to meet

CoreWeave (“the company”), a specialized cloud provider built for large-scale GPU-accelerated workloads, today announced an additional $200 million in funding from Magnetar Capital (“Magnetar”), a leading alternative asset manager.

The 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 has accelerated demand for CoreWeave’s specialized cloud infrastructure to train, serve inference and fine-tune models. 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 an attractive option for AI startups rushing to get a product to market, as teams can spin up workloads in as little as five seconds with increased portability, less overhead and less management complexity.

“In my 25-year career, I’ve never been a part of a company that’s growing like this,” said CoreWeave CEO and co-founder Michael Intrator. “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.”

Overall, generative AI remains a bright spot for investors. According to PitchBook data, about $1.7 billion was generated across 46 deals for generative AI startups in Q1 2023, with an additional $10.68 billion worth of deals announced in the quarter but not yet completed.

“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,” said Ernie Rogers, Magnetar’s chief operating officer. “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.”

About CoreWeave

Founded in 2017, CoreWeave is a specialized cloud provider, delivering a massive scale of GPU compute resources on top of the industry’s fastest and most flexible infrastructure. CoreWeave builds cloud solutions for compute-intensive use cases — VFX and rendering, machine learning and AI, batch processing and pixel streaming — that are up to 35 times faster and 80% less expensive than the large, generalized public clouds. Learn more at www.coreweave.com.