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The Star
5 days ago
- Business
- The Star
CoreWeave commits $6 billion to AI data center in Pennsylvania
FILE PHOTO: A screen displays the company logo for CoreWeave, Inc., Nvidia-backed cloud services provider, during the company's IPO at the Nasdaq Market, in New York City, U.S., March 28, 2025. REUTERS/Brendan McDermid/File Photo
The Star
07-07-2025
- Business
- The Star
CoreWeave to acquire crypto miner Core Scientific
FILE PHOTO: A screen displays the company logo for CoreWeave, Nvidia-backed cloud services provider, during the company's IPO at the Nasdaq Market, in New York City, U.S., March 28, 2025. REUTERS/Brendan McDermid/File Photo
The Star
26-06-2025
- Business
- The Star
CoreWeave in talks to buy Core Scientific, WSJ reports
A screen displays the company logo for CoreWeave, Inc., Nvidia-backed cloud services provider, during the company's IPO at the Nasdaq Market, in New York City, U.S., March 28, 2025. REUTERS/Brendan McDermid/File Photo (Reuters) -CoreWeave is in talks to buy Core Scientific, after the bitcoin miner rejected an earlier deal from the cloud provider last year, the Wall Street Journal reported on Thursday, citing people familiar with the matter. Shares of Core Scientific rose about 8% after the report, giving the company a market value of nearly $4 billion. Crypto miners use vast amounts of electricity to run their operations and are being increasingly targeted by bigger peers and AI technology companies, as they try to consolidate power supply for their energy-hungry enterprises. A deal could be finalized in the coming weeks, if talks don't face setbacks, the report said, adding that exact terms being discussed could not be learned. Core Scientific did not immediately respond to a Reuters request for comment. CoreWeave declined to comment. Core Scientific received an unsolicited non-binding proposal from CoreWeave in June last year to acquire all of the company's outstanding shares on a fully diluted basis for $1.02 billion, or $5.75 per share in cash. At the time, Core Scientific had said that the deal significantly undervalued it and was not in the best interests of the company and its shareholders. The two companies signed a series of 12-year contracts then, including an agreement under which Core Scientific would provide CoreWeave with about 200 MW of infrastructure to power its high-performance computing services. (Reporting by Juby Babu in Mexico City; Editing by Mohammed Safi Shamsi and Alan Barona)
The Star
11-06-2025
- Business
- The Star
CoreWeave to offer compute capacity in Google's new cloud deal with OpenAI, sources say
FILE PHOTO: A screen displays the company logo for CoreWeave, Inc. during the company's IPO at the Nasdaq Market, in New York City, U.S., March 28, 2025. REUTERS/Brendan McDermid/File Photo (Reuters) -CoreWeave has emerged as a winner in Google's newly signed partnership with OpenAI, sources familiar with the matter told Reuters, in the latest example of the voracious appetite for computing resources in the artificial-intelligence industry and the formation of new alliances to meet them. The so-called neocloud company, which sells cloud computing services built on Nvidia's graphics processing units, is slated to provide computing capacity to Google's cloud unit, and Alphabet's Google will then sell that computing capacity to OpenAI to meet the growing demand for services like ChatGPT, the sources said. Google will also provide some of its own computing resources to OpenAI, added the sources, who requested anonymity to discuss private matters. The details of the arrangement, first reported by Reuters on Tuesday, highlight the evolving dynamics between hyperscalers like Microsoft and Google and so-called neocloud companies like Coreweave. Hyperscalers are large cloud service providers that offer massive-scale data centers and cloud infrastructure. The insatiable hunger for computing resources has generated major investment commitments and turned rivals into partners. Backed by OpenAI and Nvidia, Coreweave signed up Google as a customer inthe first quarter. CoreWeave, Google and OpenAI declined to comment. CoreWeave, a specialized cloud provider that went public in March, has already been a major supplier of OpenAI's infrastructure. It has signed a five-year contract worth $11.9 billion with OpenAI to provide dedicated computing capacity for OpenAI's model training and inference. OpenAI also took a $350 million equity stake in CoreWeave in March. This partnership was further expanded last month through an additional agreement worth up to $4 billion, extending through April 2029, underscoring OpenAI's escalating demand for high-performance computing resources. Industry insiders say adding Google Cloud as a new customer could help CoreWeave diversify its revenue sources, and having a credible partner with deep pockets like Google enables the startup to secure more favorable financing terms to support ambitious data center buildouts across the country. This could also boost Google's cloud unit, which generated $43 billion in sales last year, allowing it to capitalize on the growth of OpenAI, which is also one of its largest competitors in areas like search and chatbots. It positions Google as a neutral provider of computing resources in competition with peers such as Amazon and Microsoft. CoreWeave's deal with Google coincides with Microsoft's re-evaluation of its data center strategy, including withdrawing from certain data center leases. Microsoft, once Coreweave's largest customer, accounting for about 62% of its 2024 revenue, is also renegotiating with OpenAI to revise the terms of their multibillion-dollar investment, including the future equity stake it will hold in OpenAI. CoreWeave, backed by Nvidia, has established itself as a fast-rising provider of GPU-based cloud infrastructure in the AI wave. While its public debut in March was met with a lukewarm response due to concerns over its highly leveraged capital structure and shifting GPU demand, the company's stock has surged since its IPO price of $40 per share, gaining over 270% and reaching a record high of $166.63 in June. (Reporting by Krystal Hu in New York and Kenrick Cai in San FranciscoEditing by Matthew Lewis)
The Star
02-06-2025
- Business
- The Star
Applied Digital and CoreWeave ink 15-year lease worth $7 billion
A screen displays the company logo for CoreWeave, Inc., Nvidia-backed cloud services provider, during the company's IPO at the Nasdaq Market, in New York City, U.S., March 28, 2025. REUTERS/Brendan McDermid Applied Digital said on Monday it has entered into two 15-year leases with CoreWeave, a specialized cloud services provider backed by Nvidia, which will generate about $7 billion in revenue for the data center operator over the lease period. WHY IT'S IMPORTANT The deal could prove to be a major lifeline for Applied Digital, which has been facing challenges in the data center hosting sector as it transitions into a data center real estate investment trust. The company's shares surged by 17% in premarket trading following the lease announcement. KEY QUOTES "These leases solidify Applied Digital's position as an emerging provider of infrastructure critical to the next generation of artificial intelligence and high-performance computing,' CEO of Applied Digital, Wes Cummins, said in a statement. "Through these newly signed long-term leases with CoreWeave, we are taking a step forward in our strategic expansion into advanced compute infrastructure." CONTEXT The emergence of new cloud service providers, known as "neoclouds" like CoreWeave, focuses on renting Nvidia's highly sought-after chips to software developers. Leasing data center infrastructure from companies like Applied Digital helps reduce some of the financial burden of providing AI-centric cloud services. CoreWeave's shares were up close to 4%. (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Tasim Zahid)
