CoreWeave is making bold strides in the AI-driven cloud computing landscape. Following a substantial funding round that reportedly values the New Jersey-based GPU cloud company at $19 billion, CoreWeave has launched a new office in London, which will serve as its European headquarters.
In conjunction with this expansion, CoreWeave plans to establish two data centers in the U.K. this year as part of a £1 billion ($1.25 billion) investment, marking its inaugural venture outside the United States.
Founded in 2017, CoreWeave is among several AI-focused cloud computing firms capitalizing on the recent AI boom, particularly the excitement surrounding generative AI technologies sparked by OpenAI’s ChatGPT. CoreWeave provides on-demand access to cloud-based AI computing resources necessary for executing tasks like data processing and machine learning model operations.
Developers creating AI applications require access to GPUs (graphics processing units), which can be challenging to set up and manage, and costly to operate, as they are typically rented for specific timeframes. CoreWeave simplifies this process by offering scalable access to a variety of Nvidia GPUs tailored to meet the diverse needs of developers.
The GPU cloud space has seen a surge of new entrants, all attracting significant investments. Notably, Lambda secured $320 million a few months ago, while French startup FlexAI raised $30 million last month, focusing on deploying AI models across various architectures rather than exclusively on Nvidia.
CoreWeave has positioned itself as a leader in the GPU cloud sector. Recently, the company announced it had raised $1.1 billion in a funding round that nearly tripled its previous valuation of $7 billion reported in December. The AI sector is experiencing a gold rush, exemplified by Nvidia’s market capitalization, which has quadrupled in the past year, surpassing $2 trillion.
U.K. and AI Growth
The U.K. ranks among the top countries for AI research and development investment, following the U.S. and China. London is home to Google’s DeepMind, and Microsoft has committed $3.15 billion to enhance its AI infrastructure in the U.K. over the coming years. Additionally, Microsoft’s newly created consumer AI division established its first international hub in London, led by former Inflection and DeepMind scientist, Jordan Hoffmann.
As the competition for AI talent escalates in the U.K., CoreWeave is set to hire approximately 30 new team members for roles in software engineering, support engineering, operations, finance, and go-to-market strategy at its new headquarters located off Brick Lane in East London.
Establishing localized computing infrastructure aligns with the broader trend in cloud computing, resulting in reduced latency and enhanced application performance for regional companies. With plans to launch two data centers in the U.K. by year-end, it’s clear CoreWeave was already strategizing on this expansion prior to today’s announcement.
By the end of 2024, CoreWeave aims to operate 28 data centers globally, although the company has not disclosed the current number. As of late 2023, CoreWeave had 14 data centers—all within the U.S.
“We are experiencing unprecedented demand for AI infrastructure, and London is a pivotal AI hub for our investments,” stated CoreWeave’s CEO and co-founder, Mike Intrator. “Expanding our physical presence in the U.K. marks a significant milestone in CoreWeave’s next growth phase.”
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