"CoreWeave was founded by former commodities traders as an Ethereum mining firm out of New Jersey. Like so much of the tech industry, when crypto sputtered, CoreWeave pivoted to AI. It started to use the same GPUs it was stockpiling to mine Ethereum to start up its own data center operation. CoreWeave's big innovation is creative financing. It raises huge money to build data centers full of Nvidia GPUs."
"CoreWeave's big innovation is creative financing. It raises huge money to build data centers full of Nvidia GPUs, and then it leases that compute back to big AI companies to feed the industry's seemingly insatiable demand for compute. That's turned CoreWeave into a pillar of the obscenely expensive AI infrastructure build-out that's turned markets inside out over the past year."
CoreWeave began as an Ethereum mining company founded by former commodities traders in New Jersey and pivoted to AI after crypto downturns. The company repurposed stockpiled Nvidia GPUs to establish data center operations. CoreWeave employs creative financing to raise large sums, build GPU-dense facilities, and lease compute to major AI firms. The company went public in March and reached roughly a $50 billion valuation while signing multiple contracts worth tens of billions with companies such as Meta and OpenAI. The rapid growth, large financings, and central role in AI compute create a complex and high-stakes position in the AI ecosystem.
Read at The Verge
Unable to calculate read time
Collection
[
|
...
]