CoreWeave to acquire AI engineering firm Monolith

LIVINGSTON, N.J. - CoreWeave, Inc. (NASDAQ:CRWV), the $69.9 billion market cap AI infrastructure company that has seen its stock surge over 180% in the past six months, announced Monday an agreement to acquire London-based Monolith AI Limited, a company specializing in artificial intelligence solutions for engineering and physics challenges. According to InvestingPro data, CoreWeave’s aggressive expansion comes amid strong revenue of $3.5 billion in the last twelve months.

The acquisition aims to combine Monolith’s simulation and test-driven machine learning capabilities with CoreWeave’s AI cloud infrastructure to create a comprehensive platform for industrial and manufacturing enterprises.

Monolith’s technology is currently used by engineering companies including Nissan, BMW, and Honeywell to accelerate product development cycles. The company’s platform offers tools such as anomaly detection, test plan optimization, and next test recommendation designed to help engineers make faster decisions without requiring specialized AI expertise.

"Together we will help these enterprises better harness AI to accelerate breakthroughs and bring better products to market faster," said Brian Venturo, Co-founder and Chief Strategy Officer at CoreWeave.

Dr. Richard Ahlfeld, Founder and CEO of Monolith, stated that joining CoreWeave will allow the company to "scale that mission dramatically" of putting AI directly into engineers’ hands.

The acquisition strengthens CoreWeave’s position in manufacturing, automotive, aerospace, and other industrial sectors where AI adoption could significantly impact research and development efficiency. According to data cited in the press release, AI adoption in complex manufacturing could increase R&D efficiency by 20 to 80 percent.

This purchase follows CoreWeave’s previous acquisitions of OpenPipe for reinforcement learning and Weights & Biases for model iteration and experiment tracking, reflecting the company’s strategy to expand its AI cloud offerings across industries.

The financial terms of the transaction were not disclosed. The acquisition is subject to customary closing conditions.

CoreWeave, which describes itself as "the AI Hyperscaler," provides cloud solutions for accelerated computing and was recently ranked on the TIME100 most influential companies list and Forbes Cloud 100 ranking in 2024, according to the company’s press release statement. While analysts anticipate continued sales growth, InvestingPro’s comprehensive research report, available for over 1,400 US stocks, reveals deeper insights into the company’s financial health and growth trajectory.

In other recent news, CoreWeave, Inc. has announced a significant amendment to its credit agreement, adding a $3 billion tranche of delayed draw term loans to finance equipment and infrastructure. The company’s financial strategies have also been bolstered by a $14.2 billion contract amendment with Meta, expanding their Master Service Agreement and marking Meta as CoreWeave’s second hyperscaler customer. This development significantly increases CoreWeave’s backlog, now totaling $44.3 billion, excluding Nvidia’s unused capacity agreement. Additionally, CoreWeave terminated a $1.2 billion put right related to its Series C convertible preferred stock following a stock price milestone. In terms of analyst ratings, Cantor Fitzgerald has reiterated its Overweight rating with a $174.00 price target, reflecting a positive outlook on CoreWeave’s expanded partnership with Meta. Meanwhile, DA Davidson has maintained an Underperform rating, with a price target of $36.00, despite the recent purchase order from Meta. These developments highlight CoreWeave’s strategic maneuvers and evolving relationships with key industry players.

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