tl;dr
AI cloud infrastructure provider CoreWeave is set to acquire AI developer platform Weights & Biases in a $1.7 billion deal. The merger aims to combine CoreWeave's computing infrastructure with Weights & Biases' AI model tools. The financial terms are undisclosed, and the deal is expected to close in...
CoreWeave, an AI cloud infrastructure provider, is set to acquire AI developer platform Weights & Biases in a $1.7 billion deal. The merger aims to combine CoreWeave's computing infrastructure with Weights & Biases' AI model tools. The financial terms are undisclosed, and the deal is expected to close in the first half of the year. Both firms did not immediately return Decrypt’s requests for comments.
The agreement represents a significant consolidation in the AI infrastructure space, with CoreWeave preparing for its public offering. Weights & Biases' tools are used by over a million AI engineers from organizations including OpenAI, Meta, NVIDIA, and others.
Matt Turck, partner at venture capital firm FirstMark, sees CoreWeave’s campaign as “the first IPO of the Generative AI era,” but warns of “unusual risk factors” with how the AI cloud provider positions itself. Turck tweeted negatively about CoreWeave and comparable companies, expressing concerns about its technology and software limitations.
Despite generating $1.92 billion in revenue last year, CoreWeave reported a staggering $863.4 million net loss in 2024. With just $1.4 billion in cash reserves, financing the acquisition may require additional capital raises as the company prepares for its Nasdaq debut. The deal also raises concerns about vendor lock-in, as CoreWeave has indicated existing Weights & Biases customers will likely be encouraged to use their cloud services.
This vertical integration strategy mirrors moves by larger tech firms that have attracted regulatory scrutiny. The merger also faces potential regulatory hurdles given CoreWeave's backing by NVIDIA and the combined entity's control over both AI development tools and compute infrastructure. Weights & Biases CEO Lukas Biewald remains hopeful for favorable outcomes.