Nvidia-backed CoreWeave acquires AI developer platform Weights & Biases

USA – CoreWeave, a data center company backed by Nvidia, has acquired Weights & Biases, a leading AI developer platform, for an undisclosed sum.

The deal, announced Tuesday, will combine CoreWeave’s high-performance cloud infrastructure with Weights & Biases’ widely used AI tools, allowing developers to build, monitor, and optimize AI models more efficiently.

While financial details were not officially disclosed, The Information reports that CoreWeave paid approximately US $1.7 billion for the acquisition.

Weights & Biases was valued at US $1.25 billion in 2023 and had recently filed for an initial public offering (IPO).

Founded in 2017 by Lukas Biewald, Chris Van Pelt, and Shawn Lewis, Weights & Biases provides AI development tools used by over 1,400 organizations, including Nvidia, OpenAI, Meta, and AstraZeneca.

The platform has become a critical system for AI engineers working on model training and fine-tuning.

Enhancing AI capabilities

CoreWeave believes the acquisition will accelerate AI innovation by integrating Weights & Biases’ software into its cloud services.

“We can build many more useful things for our mutual customers,” said Weights & Biases CEO Lukas Biewald. “There’s a ton of innovation at the intersection of hardware and software to unlock right now.”

Despite the benefits, some concerns remain. CoreWeave has stated that Weights & Biases customers can continue using their preferred cloud providers, but industry analysts warn of potential vendor lock-in.

CoreWeave may encourage existing users to migrate to its cloud services, a strategy often used by major tech firms that has previously drawn regulatory scrutiny.

Challenges and future plans

The acquisition comes as CoreWeave prepares for an IPO, aiming for a valuation above US $35 billion. However, the company faces financial and strategic hurdles.

In 2024, CoreWeave reported US $1.92 billion in revenue but also recorded a significant US $863.4 million net loss. With only US $1.4 billion in cash reserves, it may need additional funding to complete the acquisition.

Some industry experts are skeptical of CoreWeave’s positioning. Venture capitalist Matt Turck described the company as a “real estate play” with limited technology, noting that its founders have financial rather than technical backgrounds.

CoreWeave originally started as a crypto mining firm focused on Ethereum but pivoted to AI in 2022 after Ethereum’s transition to proof-of-stake.

Regulatory approval could also pose challenges, given Nvidia’s backing of CoreWeave and the growing concerns about AI market consolidation.

However, if approved, the deal will significantly strengthen CoreWeave’s AI offerings, making it a more competitive player in the cloud computing and AI infrastructure market.