CoreWeave (CRWV) continues rising up the AI ranks with aplomb.
The Nvidia (NVDA) -backed cloud upstart has become one of the most closely watched “neo-cloud” players, a new breed of tech infrastructure businesses that’s tailor-made to handle AI workloads.
Its purpose-built data centers are customized for training and inference, making them the go-to partner for generative-AI leaders.
Nvidia’s early investment is CoreWeave’s biggest edge, giving it instant credibility and access to top-tier GPUs when supply is tight.
That competitive edge has helped it land some of the biggest contracts with major AI developers to position itself as a counterweight to hyperscalers such as Amazon and Microsoft. CoreWeave has moved quickly, layering new products along with targeted acquisitions, pushing it further up the AI value chain.
Now it’s adding another piece, with a massive new acquisition that expands CoreWeave’s reach into a fresh layer of applied AI. This not only broadens its customer base, but also deepens its moat.
CoreWeave has acquired Monolith AI, equipping it to serve industrial and manufacturing clients.Image source: Bloomberg/Getty Images
CoreWeave’s latest move could potentially redefine how AI reaches the factory floor.
The Nvidia-backed tech upstart just announced its acquisition of Monolith AI, a London-based startup that looks to apply machine learning to complex physics and engineering problems.
Though there’s limited information on the financial terms, the intent is crystal clear.
CoreWeave is aiming to fuse its purpose-built AI cloud with Monolith’s simulation and test-driven models to create a one-stop shop platform for industrial and manufacturing customers.
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That essentially means quicker design cycles, affordable testing, and fewer delays for businesses involved in building everything from cars to turbines.
Monolith already has the likes of Nissan, BMW, and Honeywell as its users, helping engineers “cut months out of the product development cycle.”
For CoreWeave, the acquisition is more than just a mere expansion.
The AI giant has been quietly building out a portfolio, scooping up Weights & Biases and OpenPipe earlier this year, to position itself as the operating layer for applied AI. Also, it extends its reach beyond pure compute into high-margin, applied-AI workloads.
Co-founder of CoreWeave Brian Venturo said every industrial leader “knows AI can transform their business,” and Monolith “has closed that gap.” CEO Richard Ahlfeld echoed a similar sentiment, saying the deal is a chance to “scale our mission dramatically.”
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CoreWeave’s next step will be rolling out prebuilt simulation workflows along with digital twin pilots. As we look ahead, success will hinge on swifter validation, customer trust, and keeping workloads on its platform well after pilot stages.
It’s important to note that industrial AI is scaling fast.
IoT Analytics estimates that the market was at $43.6 billion in 2024, and is expected to surge to $153.9 billion by 2030 (23% CAGR).
Similarly, an analyst from MarketsandMarkets projects AI-in-manufacturing at $34.2 billion in 2025, rising to a whopping $155 billion by 2030 (35.3% CAGR).
CoreWeave scoops up Monolith AI to spread its tentacles beyond cloud infrastructure into industrial AI applications.
The move aims to develop a one-stop shop platform for manufacturers.
Monolith’s customer base, including Nissan, BMW, and Honeywell, adds credibility and immediate use-case depth.
Industrial AI is projected to grow from $43.6 billion in 2024 to $153.9 billion by 2030.
CoreWeave’s next leg has everything to do with building capacity, capital, and consolidation.
The company guided for Q3 sales to fall in the $1.26 to $1.30 billion range, and Q3 capex at $2.9–$3.4 billion, while keeping full-year capex at $20–$23 billion as data-center deployments grow into year-end.
Liquidity looks incredible for a hyper-build.
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CoreWeave reported a whopping $2.1 billion in cash at June 30, no debt maturities until 2028, and $25 billion raised since 2024 to fuel expansion. The backlog stands at $30.1 billion, giving powerful visibility as new capacity comes online.
On the demand side, the contracts keep stacking.
Meta’s deal totals up to a superb $14.2 billion through 2031, while OpenAI’s commitments approach $22.4 billion, which collectively support 2025 sales guidance of $5.15 to $5.35 billion while keeping capex elevated.
M&A remains central to CoreWeave’s playbook. It’s moving up the stack through its Weights & Biases and OpenPipe, and moving down through a $9 billion all-stock acquisition of Core Scientific, to secure power supply and cut costs.
Management targets $500 million in annual savings by 2027. Also, the Monolith AI deal deepens CoreWeave’s reach into sticky industrial AI workloads.
Additionally, since its March 28, 2025, IPO at $40, CoreWeave stock has more than tripled, surged 12% to 15% on the Meta announcement, and climbed roughly 25% through mid-September.
Capex surge: $20 to $23 billion in 2025 spending as capacity grows.
Strong liquidity: $2.1 billion cash, with no debt due until 2028.
Deal engine: $9 billion Core Scientific bid plus Monolith, OpenPipe, and W&B.
Stock momentum: Tripled since IPO, up 25% in the past two months.
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This story was originally reported by TheStreet on Oct 7, 2025, where it first appeared in the Technology Business News section. Add TheStreet as a Preferred Source by clicking here.