Nvidia (NVDA) backed AI hyperscaler CoreWeave has agreed to buy AI developer platform Weights & Biases for $1.7 billion. The strategic acquisition news comes as the startup is prepping for its U.S. IPO (Initial Public Listing). Weights & Biases is one of the major players in the MLOps (Machine Learning Operations) and LLMOps (Large Language Model Operations) space, enabling companies to build, train, and fine-tune their advanced AI models and applications.
Here are the Benefits of the Acquisition
Weights & Biases boasts of serving over 1,400 organizations and is used by more than 1 million AI engineers. Some of its core customers include renowned AI companies such as Nvidia, OpenAI, Meta Platforms (META), Snowflake (SNOW), and AstraZeneca (AZN), among others.
The acquisition will combine CoreWeave’s vast cloud computing network with Weights & Biases’ developer platform, enabling companies to accelerate the process of building, tuning, and deploying innovative AI applications to the market. Notably, the acquisition is expected to close in the first half of 2025, creating a large end-to-end cloud computing and AI deployment platform.
Is CoreWeave Owned by Nvidia?
Nvidia is one of the strategic investors in CoreWeave. The semiconductor giant has invested $100 million in the AI hyperscaler to date and has 1.21% of the voting rights. The company is seeking a valuation of $35 billion for its IPO.
CoreWeave announced yesterday that it was expected to list on the Nasdaq Exchange under the “CRWV” ticker, on an unspecified date. The company’s revenues soared by 737% in 2024 reaching $1.92 billion from $229 million recorded in 2023. It is important to note here that 62% of its revenues come from tech giant Microsoft (MSFT), making it highly vulnerable to MSFT’s moves. Additionally, like any other tech-focused startup, its bottom line also remains loss making.
Is Nvidia Stock a Good Buy?
Wall Street remains highly optimistic about Nvidia’s stock trajectory. On TipRanks, NVDA commands a Strong Buy consensus rating based on 39 Buys and three Hold ratings. The average Nvidia price target of $178.18 implies 53.6% upside potential from current levels. In the past year, NVDA stock has zoomed nearly 35%.
