Cloud-based AI infrastructure start-up CoreWeave announced plans to acquire AI model developer Weights & Biases. The company is simultaneously preparing itself for an IPO.
CoreWeave is one of the most popular companies in the AI industry. The company provides enterprises with access to graphics processing units (GPUs) that power AI services. According to SiliconAngle, the company confirmed the acquisition plan shortly after The Information reported that talks were underway on a deal worth $1.7 billion.
Weights & Biases, based in San Francisco and accounting for more than $250 million in investments since its founding in 2017, built a platform that accelerates the development of AI models. It provides AI developers with comprehensive tools, including capabilities to manage training datasets, test model changes and solve technical problems.
In addition, Weights & Biases offers specialized features, including tools to correct AI models’ hallucinations. The platform has been a great success and is said to be used by more than a million AI engineers, including professionals from OpenAI, Meta, Nvidia, Snowflake, and Toyota.
Complete and integrated AI experience
CoreWeave plans to integrate Weights & Biases’ technology into its cloud platform to provide customers with a complete and integrated AI experience. Customers can not only run AI models in the cloud but also develop and test them themselves. Through this partnership, the two companies aim to help customers accelerate their AI developments and bring new applications to market faster.
The company stressed that existing Weights & Biases customers can still deploy their AI models wherever they want. They are not required to use CoreWeave’s cloud. However, they will likely be encouraged to consider that option.
Turnkey cloud platform
Many enterprises want a turnkey cloud platform that allows them to build and manage AI applications in one place. CoreWeave wants to offer this platform to them. Michael Intrator, co-founder and CEO of CoreWeave, described Weights & Biases as a powerful platform that helps companies manage the complexity of AI model development, deployment and monitoring.
Together, CoreWeave and Weights & Biases aim to bring innovation to their customers on a larger scale and accelerate the adoption of AI at leading labs and companies worldwide.
The acquisition is still subject to customary closing conditions and is expected to be completed in the first half of the year. If the deal goes through, it will further accelerate CoreWeave’s IPO plans. The IPO filing shows that CoreWeave has experienced explosive growth over the past year. Revenue increased 700 percent to $1.92 billion in fiscal year 2024. The company expects even faster growth, with more than $15 billion in signed contracts pending. Still, CoreWeave remains loss-making for now, with a net loss of $863.4 million in the same year.