TSX futures subdued as gold rally takes a breather
LONDON - CoreWeave, Inc. (NASDAQ:CRWV), a rapidly growing AI infrastructure company with a market capitalization of $62.46 billion and recent stock performance showing a 20% gain in the past week, announced Tuesday a £1.5 billion expansion of its investment in AI data center capacity in the United Kingdom, bringing its total UK commitment to £2.5 billion. According to InvestingPro analysis, the company currently trades above its Fair Value, reflecting high investor expectations for its expansion plans.
The announcement, made during President Donald Trump’s State Visit to the UK, aims to address Britain’s need for infrastructure supporting AI workloads at scale. The investment is expected to support the UK Government’s Compute Roadmap and create local jobs in engineering, operations, and related services.
"Our investment in the UK will establish one of the world’s largest concentrations of state-of-the-art, sustainable compute," said Michael Intrator, Co-Founder, Chairman and Chief Executive Officer of CoreWeave.
Prime Minister Keir Starmer called the investment "a clear vote of confidence in Britain’s potential to become a world leader in AI."
As part of the expansion, CoreWeave is partnering with NVIDIA and Scotland-based DataVita to deploy NVIDIA Grace Blackwell Ultra GPUs, using renewable energy and closed-loop cooling technology to minimize water consumption. The company plans an additional sovereign AI infrastructure deployment with NVIDIA GB300 GPUs and NVIDIA RTX PRO Blackwell Server Edition GPUs.
The announcement builds on CoreWeave’s May 2024 commitment of £1 billion to establish UK operations, which resulted in two new AI data centers coming online within six months. While analysts project substantial revenue growth of 174% for fiscal year 2025, InvestingPro data indicates the company faces near-term financial challenges with current liabilities exceeding liquid assets. For deeper insights into CoreWeave’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
CoreWeave supports AI startups through its investment initiative, CoreWeave Ventures, and serves as the Official AI Cloud Computing Partner of the Aston Martin Aramco Formula One Team.
This information is based on a press release from CoreWeave, Inc.
In other recent news, CoreWeave has announced a significant cloud computing agreement with NVIDIA, valued at $6.3 billion. This deal, disclosed in an SEC filing, is part of an existing Master Services Agreement between the two companies. Under the terms, CoreWeave will sell reserved cloud computing capacity to its customers and provide NVIDIA access to any unsold capacity. Barclays reiterated its Equalweight rating on CoreWeave following this announcement, emphasizing the importance of the deal for both companies. Additionally, Citizens JMP upgraded CoreWeave’s stock rating from Market Perform to Market Outperform, citing accelerating trends in the GPU-as-a-Service market.
Cantor Fitzgerald also reiterated its Overweight rating on CoreWeave, setting a price target of $116.00. The firm pointed out the new order agreement with NVIDIA as a key factor in its positive outlook. Deutsche Bank has added CoreWeave to its Catalyst Call Buy Idea List, highlighting the strong demand for AI infrastructure and the company’s substantial powered shell capacity expected to come online soon. These developments indicate a period of strategic growth and partnerships for CoreWeave, driven by expanding market opportunities and significant contracts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.