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Cloud Provider CoreWeave to Invest $2.2 Bln in Europe

FILED - 04 November 2021, Norway, Oslo: Police officers park in front of the Norwegian Parliament building in Oslo. Photo: Britta Pedersen/dpa-Zentralbild/dpa
FILED - 04 November 2021, Norway, Oslo: Police officers park in front of the Norwegian Parliament building in Oslo. Photo: Britta Pedersen/dpa-Zentralbild/dpa
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Cloud Provider CoreWeave to Invest $2.2 Bln in Europe

FILED - 04 November 2021, Norway, Oslo: Police officers park in front of the Norwegian Parliament building in Oslo. Photo: Britta Pedersen/dpa-Zentralbild/dpa
FILED - 04 November 2021, Norway, Oslo: Police officers park in front of the Norwegian Parliament building in Oslo. Photo: Britta Pedersen/dpa-Zentralbild/dpa

Specialized cloud provider CoreWeave said on Wednesday that it plans to invest an additional $2.2 billion in Europe to meet rising demand for artificial intelligence infrastructure, bringing its total investment in the region to $3.5 billion.
The Nvidia-backed company plans to build three new data centers, each in Norway, Sweden and Spain by the end of 2025, it said. The investment is in addition to CoreWeave's $1.3 billion investment in the UK, where it has two data centers, Reuters reported.
CoreWeave has benefited from businesses rapidly adopting generative AI technology. The company has access to the most advanced Nvidia chips that are in short supply, giving it an edge over hyperscalers such as Amazon Web Services, Microsoft's Azure and Google Cloud.
Last month, CoreWeave said it was raising $7.5 billion in debt from investors led by Blackstone and Magnetar Capital to scale up its AI infrastructure to meet surging workloads. In the same month, the company was valued at $19 billion after a Series C funding round.
CoreWeave signed a series of 12-year contracts with bitcoin miner Core Scientific on Monday, which is expected to generate total cumulative revenue of more than $3.5 billion for the latter. CoreWeave made an all-cash bid to buy Core Scientific for $5.75 share on Tuesday, according to Bloomberg News.

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Dell Raises Forecasts as Demand Surges for Nvidia Powered AI Servers 

The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
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Dell Raises Forecasts as Demand Surges for Nvidia Powered AI Servers 

The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)

Dell Technologies raised its annual revenue and profit forecasts on Thursday, buoyed by demand for its AI-optimized servers that are powered by Nvidia's powerful chips, sending its shares up about 3% in extended trading.

Dell's infrastructure solutions group, which includes Nvidia-powered servers, surged 38% to a record revenue of $11.65 billion in the second quarter.

The company's servers are engineered to handle AI systems' intense computational demands, including training large language models.

"Enterprise remains a significant opportunity for us, as many are still in the early stages of AI adoption," Chief Operating Officer Jeff Clarke said in a post-earnings call.

Clarke said that Dell sees an emerging opportunity in "sovereign AI" by leveraging the company's strong relationships with governments globally.

Nvidia on Wednesday said nations building AI models in their own languages were turning to its chips, and that this would contribute about low double-digit billions to its revenue in the financial year ending in January 2025.

Nvidia CEO Jensen Huang called out the partnership with Dell earlier this year, saying they were helping businesses create their own "AI factories."

Dell's stock has risen 45% this year.

Dell said on Thursday it now expects annual revenue outlook to be between $95.5 billion and $98.5 billion, up from $93.5 billion and $97.5 billion previously. It also raised its annual adjusted profit per share forecast to $7.80, plus or minus 25 cents.

Demand for its AI-optimized servers rose about 23% sequentially to $3.2 billion in the second quarter. The backlog for these AI servers was $3.8 billion.

"Our pipeline has grown to several multiples of our backlog," Clarke said in a statement.

Revenue for the second quarter ended Aug. 2 rose about 9% to $25.03 billion, beating analysts' average estimate of $24.14 billion, according to LSEG data. It reported adjusted profit per share of $1.89 per share, compared with estimates of $1.71 per share.

While AI server demand soared, Dell's PC business struggled, losing market share to rivals. However, a strong refresh cycle for

AI PCs are expected next year after Microsoft ends support for Windows 10.

Revenue for the client solutions group - home to PCs - fell about 4% to $12.41 billion.

"Dell lost PC shipment shares in key markets in the second quarter. It is the top vendor in the US business market, but its competitors have shown growth and gained more shares than they did a year ago," said Mikako Kitagawa, director analyst at Gartner.

The company took a $328 million charge for workforce reductions in the second quarter.

Separately, Reuters exclusively reported earlier on Thursday that Dell is again exploring a possible sale of cybersecurity firm SecureWorks, following previous unsuccessful attempts to find a buyer.