CoreWeave signs $6B deal with Jane Street to provide AI compute power

CoreWeave dominates “neocloud” computing sector

CoreWeave was founded as a crypto mining company called Atlantic Crypto, in 2017, before beginning a pivot to AI cloud computing infrastructure in 2019.

The company’s shift to AI infrastructure years ahead of the crypto mining industry’s rush into the sector helped establish CoreWeave as a leading “neocloud” company, according to analysts from asset management and investment research company Bernstein.

Quarterly revenues of CoreWeave, IREN and Nebius compared. Source: Bernstein

“Neocloud” service providers are cloud computing companies built around graphics processing units (GPUs), which power artificial intelligence workloads.

Traditional cloud service providers power their operations with basic computer processing units (CPUs) suitable for running websites, Web2 platforms, video games, media streaming and applications.

The analysts compared CoreWeave with IREN and Nebius, and concluded that “relative to its neocloud peers, CRWV has by far the strongest commercial machine.”

CoreWeave benefits from a mix of contractual agreements and on-demand revenue-generating activities, while also commanding a diverse customer base, Bernstein said.

“Nine of the leading 10 AI model providers now leverage CoreWeave’s platform,” spokespeople for CoreWeave said following the Anthropic deal in April.

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