CoreWeave, a publicly traded AI cloud infrastructure company, announced on Wednesday a $6 billion deal with quantitative trading firm Jane Street, in which the firm will use CoreWeaveโs AI cloud computing infrastructure to power its trading and research operations.
Under the agreement, CoreWeave will provide Jane Street with compute from multiple data center facilities, the company’s announcement said.
Jane Street also purchased $1 billion in CoreWeave Class A Common stock at $109 per share, according to CoreWeave.
Shares of CoreWeave (CRWV) rose by 1.5% on Wednesday, climbing to about $119.04 at the time of publication, according to data from Yahoo Finance.
The deal comes about one week after CoreWeave announced an agreement with Anthropic, in which the AI developer would use CoreWeaveโs compute infrastructure to power its Claude AI large language models.ย
CoreWeaveโs pivot to AI predates the crypto mining industryโs shift by years, and highlights how miners can repurpose their infrastructure to power high-performance computing and shore up declining revenues amid a challenging economic environment.
Related: CoreWeaveโs $8.5B loan shows how AI is replacing crypto mining finance
CoreWeave dominates โneocloudโ computing sector
CoreWeave was founded as a crypto mining company called Atlantic Crypto, in 2017, before beginning a pivot to AI cloud computing infrastructure in 2019.
The companyโs shift to AI infrastructure years ahead of the crypto mining industryโs rush into the sector helped establish CoreWeave as a leading โneocloudโ company, according to analysts from asset management and investment research company Bernstein.
โNeocloudโ service providers are cloud computing companies built around graphics processing units (GPUs), which power artificial intelligence workloads.ย
Traditional cloud service providers power their operations with basic computer processing units (CPUs) suitable for running websites, Web2 platforms, video games, media streaming and applications.
The analysts compared CoreWeave with IREN and Nebius, and concluded that โrelative to its neocloud peers, CRWV has by far the strongest commercial machine.โย
CoreWeave benefits from a mix of contractual agreements and on-demand revenue-generating activities, while also commanding a diverse customer base, Bernstein said.
โNine of the leading 10 AI model providers now leverage CoreWeaveโs platform,โ spokespeople for CoreWeave said following the Anthropic deal in April.
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