CoreWeave Shares Rise 9% After Announcing New AI Venture Capital Arm
CoreWeave (CRWV) shares increased by up to 9% following the announcement of its new venture capital arm, CoreWeave Ventures, aimed at investing in early-stage artificial intelligence startups. As of midday U.S. hours, shares were up by 4.5%.
- The fund will invest in startups developing AI tools, infrastructure, or applications.
- No specific capital commitment was disclosed.
- CoreWeave's mission is to support high-performance computing for machine learning and generative AI.
- CoreWeave specializes in cloud computing optimized for AI workloads, accessing Nvidia GPUs.
- The company went public earlier this year at $40 per share, reaching a peak of $187 in June.
CoreWeave Ventures launches amid increased activity in the AI cloud infrastructure sector, highlighted by Nebius signing a five-year, $19.4 billion deal with Microsoft, boosting AI and data center stocks.
- CoreWeave is acquiring bitcoin miner Core Scientific (CORZ) in a $9 billion all-stock deal, pending approvals.
- The new venture provides AI startups with specialized investment alternatives.