CoreWeave, a GPU cloud company, is wasting no time after its recent mega funding round. The startup, which was valued at $19 billion, has now established a London office to serve as its European headquarters. This move comes as part of CoreWeave’s plan to invest £1 billion ($1.25 billion) in opening two data centers in the UK this year, marking its first expansion outside of the US.
Founded in 2017, CoreWeave is capitalizing on the AI boom by offering cloud-based AI “compute” infrastructure. This enables developers to access GPUs for their AI applications without the hassle of setting up and managing complex systems. CoreWeave provides on-demand and scalable processing power through a range of Nvidia GPUs.
The GPU cloud space is attracting significant attention and investment. Lambda recently raised $320 million, while French startup FlexAI secured $30 million for deploying AI models across multiple architectures, not limited to Nvidia.
However, CoreWeave stands out as a frontrunner in the field. It recently raised $1.1 billion, nearly tripling its valuation from the previously reported $7 billion figure. The company’s success mirrors the AI gold rush, with Nvidia’s market capitalization quadrupling to over $2 trillion in the past year.
The UK is recognized as a leading country for R&D investment in AI, trailing only behind the US and China. Google’s DeepMind is based in London, and Microsoft has committed $3.15 billion to build its AI infrastructure in the country. The UK’s strong AI ecosystem is attracting global companies like CoreWeave, which plans to hire around 30 staff for software engineering, support engineering, operations, finance, and go-to-market roles.
Setting up localized “compute” infrastructure not only promotes lower latency but also enables higher-performing applications for companies in the region. CoreWeave’s decision to open two UK data centers by the end of this year suggests that these plans were already in progress.
By the end of 2024, CoreWeave will have a total of 28 data centers worldwide, though the current number remains undisclosed. The company’s CEO and co-founder, Mike Intrator, emphasized the growing demand for AI infrastructure and described London as an important AI hub that CoreWeave is investing in. This expansion marks a significant milestone for the company’s growth trajectory.
