Artificial Intelligence (AI)-powered cloud company CoreWeave (CRWV) further bolstered its growth story with the acquisition of Monolith AI Limited, a London-based company that applies AI and machine learning to solve complex physics and engineering challenges. The company didn’t disclose the financial terms of the deal. CRWV stock rose 1.5% in Monday’s extended trading session in reaction to the news.
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CRWV stock has rallied 235% from its initial public offering (IPO) price of $40, driven by AI-led tailwinds.
More on CoreWeave’s Acquisition of Monolith AI
CoreWeave aims to unlock new levels of innovation by combining its purpose-built AI cloud with Monolith’s simulation and test-driven machine learning capabilities. This acquisition will enable CoreWeave to offer a full-stack platform for industrial and manufacturing enterprises, allowing users to shorten research and development (R&D) cycles and accelerate product development and design.
CRWV highlighted that Monolith’s platform is already used by many leading engineering companies, including Nissan (NSANF), BMW (DE:BMW), and Honeywell (HON) to “cut months out of the product development cycle and accelerate innovation.”
Importantly, Monolith’s tools, such as anomaly detection and test plan optimization, enable engineers to make faster and more reliable decisions without requiring in-house AI or coding expertise.
Interestingly, CoreWeave continues to strengthen its offerings through strategic acquisitions. Earlier this year, the company acquired AI developer platform Weights & Biases. Moreover, CRWV recently acquired OpenPipe, a leading platform for training AI agents with reinforcement learning.
Is CoreWeave a Good Stock to Buy?
Overall, Wall Street has a Moderate Buy consensus rating on CoreWeave stock based on 16 Buys, 11 Holds, and two Sell recommendations. The average CRWV stock price target of $149.56 indicates 11.7% upside potential.
