Market Analysis

On Wednesday, specialized cloud provider CoreWeave announced plans to invest an additional $2.2 billion in Europe to address the growing demand for artificial intelligence infrastructure, bringing its total investment in the region to $3.5 billion.

The Nvidia-backed company intends to establish three new data centers in Norway, Sweden, and Spain by the end of 2025. This new investment is on top of CoreWeave's existing $1.3 billion investment in the UK, where it already operates two data centers.

CoreWeave has experienced significant growth due to businesses swiftly adopting generative AI technology. The company has access to the latest Nvidia chips, which are in high demand and scarce supply, giving it a competitive advantage over hyperscalers like Amazon Web Services, Microsoft's Azure, and Google Cloud.

Last month, CoreWeave announced it was raising $7.5 billion in debt from investors led by Blackstone and Magnetar Capital to expand its AI infrastructure to meet increasing workloads. The company was also valued at $19 billion after a Series C funding round in the same month.

Additionally, CoreWeave signed a series of 12-year contracts with bitcoin miner Core Scientific on Monday, expected to generate more than $3.5 billion in total cumulative revenue for Core Scientific. CoreWeave made an all-cash bid to acquire Core Scientific for $5.75 per share on Tuesday, according to Bloomberg News, which led to a 33% increase in Core Scientific's share price.

Paraphrasing text from "Reuters" all rights reserved by the original author.