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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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Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
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Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights

Shares of Salesforce gained more than 5% on Thursday as investors cheered the customer relationship management software maker's upbeat quarterly results and its artificial intelligence push to drive growth.

The company has been heavily investing to integrate its AI technologies into existing products, such as its messaging platform Slack, to enhance their capabilities and attract more customers.

"We continue to see Salesforce as an under-appreciated AI winner as its differentiated data and early success in creating/deploying GenAI agents," Reuters quoted Goldman Sachs analyst Kash Rangan as saying.

Wall Street was concerned that tempered cloud spending would affect Salesforce in a tough economy, but the software-as-a-service (SaaS) firm reported better-than-expected revenue, profit and margins in the second quarter.

Salesforce also raised its profit forecast for the year ending January 2025, as margins continue to expand, thanks to its restructuring efforts last year.

The stock is trading at 24.49 times that of Wall Street's profit expectations, compared with 52.11 for SaaS peer ServiceNow and cloud contact center firm Five9's 13.30.

Salesforce is set to add $14 billion to its market capitalization if premarket gains hold. The company's valuation stood at $248 billion as of Wednesday's close.

"We think these results alone are not good enough to drive a sustainable rally from here. For that, we need more catalysts, which could come with the new AI solutions," which are set to be showcased at its event Dreamforce and launched in October, Barclays analyst Raimo Lenschow said.

Some analysts believe that sustained growth in the coming quarters can come through customer support platform Agentforce, which is not yet commercially available.