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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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Nations Building Their Own AI Models Add to Nvidia's Growing Chip Demand

FILE PHOTO: AI (Artificial Intelligence) letters and robot hand miniature in this illustration, taken June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: AI (Artificial Intelligence) letters and robot hand miniature in this illustration, taken June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
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Nations Building Their Own AI Models Add to Nvidia's Growing Chip Demand

FILE PHOTO: AI (Artificial Intelligence) letters and robot hand miniature in this illustration, taken June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: AI (Artificial Intelligence) letters and robot hand miniature in this illustration, taken June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

Nations building artificial intelligence models in their own languages are turning to Nvidia's chips, adding to already booming demand as generative AI takes center stage for businesses and governments, a senior executive said on Wednesday.
Nvidia's third-quarter forecast for rising sales of its chips that power AI technology such as OpenAI's ChatGPT failed to meet investors' towering expectations. But the company described new customers coming from around the world, including governments that are now seeking their own AI models and the hardware to support them, Reuters said.
Countries adopting their own AI applications and models will contribute about low double-digit billions to Nvidia's revenue in the financial year ending in January 2025, Chief Financial Officer Colette Kress said on a call with analysts after Nvidia's earnings report.
That's up from an earlier forecast of such sales contributing high single-digit billions to total revenue. Nvidia forecast about $32.5 billion in total revenue in the third quarter ending in October.
"Countries around the world (desire) to have their own generative AI that would be able to incorporate their own language, incorporate their own culture, incorporate their own data in that country," Kress said, describing AI expertise and infrastructure as "national imperatives."
She offered the example of Japan's National Institute of Advanced Industrial Science and Technology, which is building an AI supercomputer featuring thousands of Nvidia H200 graphics processors.
Governments are also turning to AI as a measure to strengthen national security.
"AI models are trained on data and for political entities -particularly nations - their data are secret and their models need to be customized to their unique political, economic, cultural, and scientific needs," said IDC computing semiconductors analyst Shane Rau.
"Therefore, they need to have their own AI models and a custom underlying arrangement of hardware and software."
Washington tightened its controls on exports of cutting-edge chips to China in 2023 as it sought to prevent breakthroughs in AI that would aid China's military, hampering Nvidia's sales in the region.
Businesses have been working to tap into government pushes to build AI platforms in regional languages.
IBM said in May that Saudi Arabia's Data and Artificial Intelligence Authority would train its "ALLaM" Arabic language model using the company's AI platform Watsonx.
Nations that want to create their own AI models can drive growth opportunities for Nvidia's GPUs, on top of the significant investments in the company's hardware from large cloud providers like Microsoft, said Bob O'Donnell, chief analyst at TECHnalysis Research.