Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
NEW YORK/SEATTLE - CoreWeave, Inc. (NASDAQ:CRWV), the $48.39 billion AI infrastructure company whose stock has surged over 133% in the past six months, announced Wednesday it has reached a definitive agreement to acquire OpenPipe Inc, a platform specializing in training AI agents through reinforcement learning (RL) technology. According to InvestingPro data, analysts expect the company’s revenue to grow by 174% this fiscal year.
OpenPipe has developed machine learning techniques that enable AI agents to learn from experience, improving their accuracy and performance over time. The company maintains Agent Reinforcement Trainer (ART), described as a widely used open-source library for training agents with reinforcement learning.
"Reinforcement learning is emerging as a pivotal force to strengthen model performance on agentic and reasoning tasks," said Brian Venturo, Co-founder and Chief Strategy Officer at CoreWeave.
The acquisition follows CoreWeave’s recent purchase of Weights & Biases and furthers the company’s strategy to integrate more capabilities across its technology stack. The addition of OpenPipe’s reinforcement learning and fine-tuning tools aims to provide customers with expanded options for training and optimizing AI models.
Kyle Corbitt, Co-founder and CEO of OpenPipe, stated that the company’s technology "helps customers train highly reliable agents, bridging the gap between prototype and production."
CoreWeave, which describes itself as the "AI Hyperscaler," operates data centers across the United States and Europe. The company was recently recognized on the TIME100 most influential companies list and Forbes Cloud 100 ranking for 2024.
Financial terms of the acquisition were not disclosed, according to the company’s press release statement.
In other recent news, CoreWeave has been the focus of several significant developments. H.C. Wainwright upgraded CoreWeave’s stock rating to Buy, setting a price target of $180, attributing recent selling pressure to early investor liquidation post-lockup rather than performance concerns. Cantor Fitzgerald also initiated coverage on CoreWeave with an Overweight rating and a price target of $116, highlighting the balance between AI market opportunities and execution risks. Meanwhile, Jane Street Group disclosed a 5.4% stake in CoreWeave, making it the fourth largest shareholder. Additionally, CoreWeave’s largest shareholder, Magnetar Financial, sold a significant portion of its shares following the expiration of the post-IPO lockup period. Magnetar sold 915,339 shares worth $94.4 million and employed a protective collar strategy to hedge its remaining position. These recent developments indicate significant interest and activity around CoreWeave’s stock.
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