CoreWeave, Former Ethereum Miner, Raises $221 Million In Series B Funding

CoreWeave, a provider of customized cloud services, disclosed in a recent press release that it secured $221 million in a Series B funding round, allowing it to expand its operations and bolster its strengths in various emerging technologies.

Magnetar Capital led the funding round, which NVIDIA, Nat Friedman, and Daniel Gross supplemented. Magnetar Capital provided CoreWeave with a $50 million investment in November 2021. 

CoreWeave states that the funds will be utilized for growing its cloud infrastructure for computational workloads such as artificial intelligence, pixel streaming, machine learning, visual effects, rendering, and batch processing. Michael Intrato, CEO and co-founder of the company, stated that NVIDIA’s support would assist the company’s advancement. 

CoreWeave was founded in 2017 and employs cloud technology to mount graphics processing unit (GPU) computational resources that, according to the company, are 35 times quicker and 80% less costly than competitor solutions. Initially, the company was an Ethereum miner, utilizing GPUs to validate transactions on the proof-of-work blockchain.

In September 2022, Ethereum completed the long-awaited Merge upgrade, transitioning the network from the prior proof-of-work protocol to proof-of-stake. The action deemed Ethereum mining obsolete and GPUs used for Ethereum mining. However, CoreWeave suspended its Ethereum mining operations well before the completion of the Merge.