AI cloud infrastructure provider CoreWeave has announced a landmark $6 billion agreement with quantitative trading firm Jane Street. Under the deal, CoreWeave will supply AI cloud computing power from multiple data center facilities to support Jane Street's trading and research operations. Additionally, Jane Street has invested $1 billion in CoreWeave's Class A Common stock at $109 per share.
The announcement follows a series of major partnerships for CoreWeave, including a recent agreement with AI developer Anthropic to power its Claude AI models, and a significant expansion of its existing multi-billion dollar contract with Meta. These deals have solidified CoreWeave's position as a dominant force in the "neocloud" sector—cloud computing built specifically around GPUs for AI workloads.
CoreWeave's financial momentum is staggering. The company reported quarterly revenue soaring 168% year-over-year to over $5.1 billion, while its revenue backlog skyrocketed 342% to $66.8 billion. Analysts project revenue could reach $12.4 billion this year. The company's pivot from its origins as a crypto mining firm called Atlantic Crypto in 2017 to AI infrastructure beginning in 2019 has positioned it years ahead of the broader mining industry's shift into high-performance computing.
Despite the explosive growth, concerns linger over CoreWeave's rising debt, which has climbed to over $14 billion as it funds a massive data center build-out primarily through convertible bonds. However, management and analysts believe the strategic investment in GPU infrastructure will ultimately generate high-margin returns.
On the markets, CoreWeave's stock (CRWV) reacted positively to the Jane Street news, rising 1.5% to approximately $119.04. The stock has staged a powerful recovery, climbing over 80% from its yearly low to break above key technical resistance levels, with some analysts setting a next price target near $152.60.
