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Business Wire
7 days ago
- Business
- Business Wire
CoreWeave Reports Strong Second Quarter 2025 Results
LIVINGSTON, N.J.--(BUSINESS WIRE)--CoreWeave, Inc. (Nasdaq: CRWV), the AI Hyperscaler™, today reported financial results for the second quarter ended June 30, 2025. "Our strong second quarter performance demonstrates continued momentum across every dimension of our business," said Michael Intrator, Co-Founder, Chairman of the Board and Chief Executive Officer, CoreWeave. "We are scaling rapidly as we look to meet the unprecedented demand for AI. Our purpose-built AI cloud platform continues to set new benchmarks for performance and scalability including becoming the first company to offer the complete Blackwell GPU portfolio at scale, making CoreWeave the platform of choice for the world's most advanced AI workloads and AI pioneers.' Second Quarter 2025 Financial Highlights Non-GAAP Measures (In thousands, except percentages) Three Months Ended June 30, 2025 2024 Adjusted EBITDA $ 753,169 $ 249,841 Adjusted EBITDA margin 62 % 63 % Adjusted operating income $ 199,788 $ 85,381 Adjusted operating income margin 16 % 22 % Adjusted net loss $ (130,806 ) $ (5,130 ) Adjusted net loss margin (11 )% (1 )% Expand (See 'Non-GAAP Financial Measures' and the reconciliation of GAAP to non-GAAP results table in this press release for additional information.) Additional Second Quarter 2025 Financial Highlights Revenue backlog was $30.1 billion as of June 30, 2025. 1 ________________________________ 1 Revenue backlog includes remaining performance obligations, plus, subject to the satisfaction of delivery and availability of service requirements, other amounts we estimate will be recognized as revenue in future periods under committed customer contracts. Expand Second Quarter 2025 Highlights Key customer wins across AI labs, hyperscalers and enterprises including $4 billion expansion deal with OpenAI, in addition to previously announced $11.9 billion deal New hyperscaler customer - signed and expanded in the quarter AI labs and enterprises including: BT Group, Cohere, Hippocratic AI, Hologen, LG CNS, Mistral, Moonvalley, Novel and Woven by Toyota Official AI Cloud Computing Partner of the Aston Martin Aramco Formula One ® Team Continued rapid scaling of our purpose-built AI Infrastructure. We ended the quarter with approximately 470 MW of active power and we increased total contracted power approximately 600 MW to 2.2 GW Continued to drive our technology leadership position across our platform, enabling leading AI companies to unleash AI's potential First to bring NVIDIA GB200 NVL72 systems online for customers at scale, with AI frontier companies like Cohere, IBM and Mistral AI and we announced general availability of B200 based instances Delivered the largest-ever MLPerf Training v5.0 submission utilizing NVIDIA Blackwell GB200 instances. The breakthrough submission was 34X larger than other submissions and 4.5x more performant than the best GB200 submission from any other enterprise Completed acquisition of Weights & Biases and launched new products to extend our cloud platform capabilities Mission Control Integration: groundbreaking cluster health management system, now available through W&B Models. Providing real-time insights and remediation tips for CoreWeave AI clusters W&B Inference, powered by the CoreWeave Cloud Platform: gives AI developers a simple way to access and explore leading open-source AI models through the W&B platform W&B Weave Online Evaluations: provides real-time insights into how their AI agents are performing in production Held our largest ever developer event, Weights & Biases by CoreWeave Fully Connected Developing, as part of a joint venture, a new data center campus in Kenilworth, NJ, with capacity of up to 250MW. This marks CoreWeave's first greenfield purpose-built AI data center project, with the initial phase expected to be delivered in 2026 Successfully raised $2 billion in 9.25% Senior Unsecured Notes due 2030, upsized by $500 million due to strong demand, to drive the next generation of cloud computing for the future of AI Business Outlook CoreWeave will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast. Webcast and Conference Call Information CoreWeave will host an audio webcast to discuss the results for the second quarter of 2025, provide a business update, and forward-looking guidance at 2:00 pm PT / 5:00 pm ET today. The live webcast of CoreWeave's earnings conference call can be accessed at the CoreWeave Investor Relations website at along with the earnings press release and earnings presentation. Following the call, a replay will be available at the same website. A transcript of the conference call will be posted to the website. Disclosure Information CoreWeave uses its investor relations page ( its X account (@CoreWeave), and its LinkedIn page ( to disclose material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor these websites, in addition to following CoreWeave's press releases, Securities and Exchange Commission (SEC) filings, public conference calls and public webcasts. About CoreWeave CoreWeave, the AI Hyperscaler™, delivers a cloud platform of cutting-edge software powering the next wave of AI. The company's technology provides enterprises and leading AI labs with cloud solutions for accelerated computing. Since 2017, CoreWeave has operated a growing footprint of data centers across the US and Europe. CoreWeave was ranked as one of the TIME100 most influential companies and featured on Forbes Cloud 100 ranking in 2024. Learn more at Forward-Looking Statements This press release contains 'forward-looking statements' within the meaning of applicable securities laws. Such statements are based on our current expectations, forecasts and assumptions and involve risks and uncertainties. These statements include, but are not limited to, statements related to our business; our strategy; our capital structure; our market opportunity and future growth; market trends; demand for our platform; the expected timing of the completion of our new data center campus in Kenilworth, NJ; other estimated of other amounts included in our revenue backlog figure; our plans to scale our platform; and strategic opportunities. In some cases, you can identify forward-looking statements by terms such as 'anticipate,' 'believe,' 'estimate,' 'expect,' 'intend,' 'may,' 'might,' 'plan,' 'project,' 'will,' 'would,' 'should,' 'could,' 'can,' 'predict,' 'potential,' 'target,' 'explore,' 'continue,' 'outlook,' 'guidance,' or the negative of these terms, where applicable, and similar expressions intended to identify forward-looking statements. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include but are not limited to our ability to execute our business strategies and manage our growth, our ability to maintain and grow our customer base, continued demand for AI infrastructure, any disruption in our strategic relationships or disruptions with our third-party providers, including our suppliers and data center partners, our ability to develop and maintain our corporate infrastructure and internal controls, our financial performance, capital requirements and ability to raise additional capital and the impact of global political and macroeconomic conditions, including the effects of global geopolitical conflicts, inflation, tariffs, interest rates, any instability in the global banking sector and foreign currency exchange rates. More information about factors that could affect our operating results is included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent filings with the SEC, including in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, copies of which may be obtained by visiting our Investor Relations website at or the SEC's website at Forward-looking statements speak only as of the date the statements are made and are based on information available to us at the time those statements are made and/or management's good faith belief as of that time with respect to future events. Additionally, the forward-looking statements in this press release do not include the potential impact of any acquisitions that may be announced and/or completed after the date hereof. We assume no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law. Non-GAAP Financial Measures To supplement our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States ('GAAP'), we use adjusted EBITDA and adjusted EBITDA margin, adjusted operating income (loss) and adjusted operating income (loss) margin, adjusted net income (loss) and adjusted net income (loss) margin, collectively, to help us evaluate our business. We use such non-GAAP financial measures to make strategic decisions, establish business plans and forecasts, identify trends affecting our business, and evaluate operating performance. We believe that these non-GAAP financial measures, when taken collectively, may be helpful to investors because they allow for greater transparency into what measures we use in operating our business and measuring our performance and enable comparison of financial trends and results between periods where items may vary independent of business performance. These non-GAAP financial measures are presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies. Forward-looking non-GAAP financial measures are presented on a non-GAAP basis without reconciliation due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations. Accordingly, a reconciliation of these forward-looking non-GAAP financial measures are not available without unreasonable effort. A reconciliation is provided below for each historical non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. CoreWeave encourages investors to review the related U.S. GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate CoreWeave's business. COREWEAVE, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) June 30, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents $ 1,152,883 $ 1,361,083 Restricted cash and cash equivalents, current 560,173 37,394 Accounts receivable, net 1,933,698 416,526 Prepaid expenses and other current assets 299,229 101,246 Total current assets 3,945,983 1,916,249 Restricted cash and cash equivalents, non-current 340,527 637,356 Restricted marketable securities, non-current — 29,308 Property and equipment, net 16,631,510 11,914,774 Operating lease right-of-use assets 3,380,201 2,589,547 Intangible assets, net 205,895 4,909 Goodwill 812,970 19,544 Other non-current assets 924,277 720,912 Total assets $ 26,241,363 $ 17,832,599 Liabilities, Redeemable Convertible Preferred Stock, Redeemable Common Stock, and Stockholders' Equity (Deficit) Current liabilities Accounts payable $ 1,226,579 $ 868,259 Accrued liabilities 1,411,237 355,821 Debt, current 3,627,664 2,468,425 Deferred revenue, current 951,346 768,927 Operating lease liabilities, current 279,080 213,104 Finance lease liabilities, current 60,396 57,801 Other current liabilities 53 230,244 Total current liabilities 7,556,355 4,962,581 Debt, non-current 7,423,837 5,457,915 Derivative and warrant liabilities 698 200,089 Deferred revenue, non-current 3,896,173 3,294,977 Operating lease liabilities, non-current 3,168,392 2,388,912 Finance lease liabilities, non-current 3,112 34,120 Deferred tax liabilities, non-current 245,659 149,232 Other non-current liabilities 126,331 36,260 Total liabilities 22,420,557 16,524,086 Commitments and contingencies Redeemable convertible preferred stock and redeemable common stock Redeemable convertible preferred stock — 1,722,111 Redeemable Class A common stock 1,163,159 — Stockholders' equity (deficit) Preferred stock — — Class A common stock 2 1 Class B common stock 0 0 Class C common stock — — Treasury stock (33,524 ) (33,524 ) Additional paid-in capital 4,772,825 1,096,160 Accumulated other comprehensive income (loss) (271 ) — Accumulated deficit (2,081,385 ) (1,476,235 ) Total stockholders' equity (deficit) 2,657,647 (413,598 ) Total liabilities, redeemable convertible preferred stock, redeemable common stock, and stockholders' equity (deficit) $ 26,241,363 $ 17,832,599 Expand COREWEAVE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Cash flows from operating activities: Net loss $ (290,509 ) $ (323,021 ) $ (605,150 ) $ (452,269 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities Depreciation and amortization 559,481 164,460 1,002,978 243,970 Non-cash lease expense 77,244 26,925 144,113 42,015 Amortization of debt discounts and issuance costs and accretion of redemption premiums 29,036 7,547 66,727 15,605 Loss (gain) on fair value adjustments — 310,231 (26,837 ) 407,731 Stock-based compensation 145,005 7,660 328,978 15,849 Deferred income taxes 46,267 28,521 90,884 43,207 Other non-cash reconciling items 17,409 (2,962 ) 40,132 (3,848 ) Changes in operating assets and liabilities, net of effect of business acquisition: Accounts receivable (865,946 ) (235,076 ) (1,504,696 ) (180,748 ) Prepaid expenses and other current assets (110,519 ) (21,592 ) (120,448 ) 1,636 Accounts payable and accrued expenses (351,500 ) 182,553 (289,173 ) 697,848 Deferred revenue 758,796 84,916 742,892 1,524,487 Lease liabilities (59,342 ) (14,889 ) (110,451 ) (20,708 ) Other non-current assets (206,673 ) (333,097 ) 49,968 (413,561 ) Net cash provided by (used in) operating activities (251,251 ) (117,824 ) (190,083 ) 1,921,214 Cash flows from investing activities: Purchase of property and equipment, including capitalized internal-use software (2,452,992 ) (2,247,161 ) (3,860,351 ) (3,989,096 ) Sale of available-for-sale marketable securities — 840 — 840 Maturities of marketable securities — 47,822 29,308 47,822 Purchase of restricted marketable securities — — — (29,308 ) Purchase of strategic investments — (50,000 ) — (50,000 ) Sale of warrants received as lease incentive 100,645 — 100,645 — Business combination, net of cash acquired (45,706 ) — (45,706 ) — Issuance of notes receivable (18,000 ) — (73,000 ) — Other investing activities (26,109 ) (1,433 ) (26,109 ) (1,433 ) Net cash provided by (used in) investing activities (2,442,162 ) (2,249,932 ) (3,875,213 ) (4,021,175 ) Cash flows from financing activities: Proceeds from issuance of debt 3,647,767 889,894 4,432,723 1,821,541 Repayments of debt (1,303,763 ) (69,460 ) (1,574,867 ) (74,416 ) Payment of debt issuance costs (36,536 ) (3,479 ) (36,536 ) (3,479 ) Issuance of redeemable convertible preferred stock, net of issuance costs — 1,147,476 — 1,172,476 Redeemable convertible preferred stock cash dividends paid (2,592 ) — (28,693 ) — Proceeds from exercise of stock options 1,744 597 4,538 642 Proceeds from initial public offering, net of underwriting discounts and commissions — — 1,422,619 — Issuance of common stock, net of underwriting discounts and commissions 67,669 — 67,669 — Payment of tax withholdings on settlement of RSUs and RSAs (116,873 ) — (132,558 ) — Deferred offering costs paid (10,893 ) — (27,763 ) — Other financing activities (17,343 ) (24,739 ) (44,086 ) (56,980 ) Net cash provided by (used in) financing activities $ 2,229,180 $ 1,940,289 $ 4,083,046 $ 2,859,784 Net increase in cash, cash equivalents, and restricted cash $ (464,233 ) $ (427,467 ) $ 17,750 $ 759,823 Cash, cash equivalents, and restricted cash—beginning of period 2,517,816 1,667,365 2,035,833 480,075 Cash, cash equivalents, and restricted cash—end of period $ 2,053,583 $ 1,239,898 $ 2,053,583 $ 1,239,898 Expand Reconciliation of GAAP to Non-GAAP Results Reconciliation of Net Loss to Adjusted EBITDA (in thousands, except percentages) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net loss $ (290,509 ) $ (323,021 ) $ (605,150 ) $ (452,269 ) Depreciation and amortization 559,481 164,460 1,002,978 243,970 Interest expense, net 266,966 66,766 530,801 107,422 Stock-based compensation 145,005 7,660 328,978 15,849 Provision for (benefit from) income taxes 47,775 40,151 93,811 55,550 Acquisition related costs (1) 29,474 — 35,604 — Other expense (income), net (5,023 ) (16,406 ) (886 ) (23,866 ) (Gain) loss on fair value adjustments (2) — 310,231 (26,837 ) 407,731 Adjusted EBITDA $ 753,169 $ 249,841 $ 1,359,299 $ 354,387 Revenue $ 1,212,788 $ 395,371 $ 2,194,420 $ 584,055 Net loss margin (24 )% (82 )% (28 )% (77 )% Adjusted EBITDA margin 62 % 63 % 62 % 61 % (1) Acquisition related costs include direct transaction costs, such as due diligence, advisory, and professional services fees, and certain compensation and integration related expenses. We exclude acquisition related costs, as we believe these transaction-specific expenses are inconsistent in amount and frequency, and do not correlate to the operation of our business. (2) Represents adjustments related to recording our derivative liabilities at fair value at the end of each reporting period for our 2021 Convertible Senior Secured Notes, warrant liabilities related to our 2022 Senior Secured Notes, and the fair value remeasurement of the option liability in connection with our Series B financing. Refer to Note 3. Fair Value Measurements to our consolidated financial statements included in our Quarterly Report on Form 10-Q filed or to be filed with the SEC for the quarter ended June 30, 2025 for additional information. Expand Reconciliation of Operating Income to Adjusted Operating Income (in thousands, except percentages) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Operating income (loss) $ 19,209 $ 77,721 $ (8,261 ) $ 94,568 Stock-based compensation 145,005 7,660 328,978 15,849 Acquisition related costs (1) 29,474 — 35,604 — Amortization of acquired intangibles (2) 6,100 — 6,100 — Adjusted operating income $ 199,788 $ 85,381 $ 362,421 $ 110,417 Revenue $ 1,212,788 $ 395,371 $ 2,194,420 $ 584,055 Operating income (loss) margin 2 % 20 % 0 % 16 % Adjusted operating income margin 16 % 22 % 17 % 19 % (1) Acquisition related costs include direct transaction costs, such as due diligence, advisory, and professional services fees, and certain compensation and integration related expenses. We exclude acquisition related costs, as we believe these transaction-specific expenses are inconsistent in amount and frequency, and do not correlate to the operation of our business. (2) In the second quarter of 2025, we began including an adjustment for the amortization of acquired intangibles in our calculation of adjusted operating income (loss). Prior period non-GAAP calculations for acquired intangible amortization are not being adjusted as these amounts were insignificant. Expand Reconciliation of Net Loss to Adjusted Net Loss (in thousands, except percentages) Three Months Ended June 30, Six Months Ended June 30, Net loss $ (290,509 ) $ (323,021 ) $ (605,150 ) $ (452,269 ) Stock-based compensation 145,005 7,660 328,978 15,849 Acquisition related costs (1) 29,474 — 35,604 — Amortization of acquired intangibles (2) 6,100 — 6,100 — Loss on extinguishment of debt (3) 8,487 — 10,305 — (Gain) loss on fair value adjustments (4) — 310,231 (26,837 ) 407,731 Other adjustments (5) (10,690 ) — (10,690 ) — Income tax effect related to the above adjustments (6) (18,673 ) — (18,673 ) — Adjusted net loss $ (130,806 ) $ (5,130 ) $ (280,363 ) $ (28,689 ) Revenue $ 1,212,788 $ 395,371 $ 2,194,420 $ 584,055 Net loss margin (24 )% (82 )% (28 )% (77 )% Adjusted net loss margin (11 )% (1 )% (13 )% (5 )% (1) Acquisition related costs include direct transaction costs, such as due diligence, advisory, and professional services fees, and certain compensation and integration related expenses. We exclude acquisition related costs, as we believe these transaction-specific expenses are inconsistent in amount and frequency, and do not correlate to the operation of our business. (2) In the second quarter of 2025, we began including an adjustment for the amortization of acquired intangibles in our calculation of adjusted net loss. Prior period non-GAAP calculations for acquired intangible amortization are not being adjusted as these amounts were insignificant. (3) Primarily relates to accelerated amortization of debt discount and debt issuance costs related to our 2024 Term Loan, which was repaid in connection with the IPO. (4) Represents adjustments related to recording our derivative liabilities at fair value at the end of each reporting period for our 2021 Convertible Senior Secured Notes, warrant liabilities related to our 2022 Senior Secured Notes, and the fair value remeasurement of the option liability in connection with our Series B financing. Refer to Note 3. Fair Value Measurements to our consolidated financial statements included in our Quarterly Report on Form 10-Q filed or to be filed with the SEC for the quarter ended June 30, 2025 for additional information. (5) Primarily relates to a gain on the sale of warrants received as a lease incentive. Expand
Yahoo
25-06-2025
- Business
- Yahoo
KDDI and HPE Join Forces to Launch AI Data Center Operations by Early 2026
HPE's industry-leading direct liquid cooling technologies enable NVIDIA Blackwell-accelerated AI infrastructure LAS VEGAS, June 25, 2025--(BUSINESS WIRE)--HPE Discover 2025 – HPE (NYSE: HPE) and KDDI Corporation today announced they are collaborating to open the Osaka Sakai Data Center by early 2026 to support startups and enterprises with NVIDIA AI infrastructure for developing AI applications and training large language models (LLMs). Through the collaboration, KDDI and HPE will deploy a rack-scale system featuring the NVIDIA GB200 NVL72 platform built by HPE, based on the latest NVIDIA Blackwell architecture, within the Osaka Sakai Data Center. The Osaka Sakai Data Center takes advantage of hybrid cooling technology, which combines air cooling and direct liquid cooling, to reduce the facility's environmental impact. Additionally, KDDI and HPE will jointly promote services delivered from the Osaka Sakai Data Center to accelerate the prevalence and adoption of AI solutions among businesses and consumers in Japan and globally. HPE supports AI sustainability with liquid cooling expertise The rapid advancement of AI technology has created a pressing need for large-scale, high-performance AI infrastructure. To address this demand, KDDI is building an AI data center in Sakai City within the Osaka Prefecture of Japan, to support accelerated development of trillion parameter generative AI models. The Osaka Sakai Data Center will support AI-related business in Japan and globally, serving organizations and individuals developing generative AI models or leveraging the system's low-latency inferencing capabilities. KDDI plans to offer cloud-based AI computing services to organizations through WAKONX, its business platform for the AI era. The NVIDIA GB200 NVL72 by HPE is a rack-scale system – inclusive of NVIDIA accelerated computing, NVIDIA networking, NVIDIA software – designed to enable large and complex AI clusters that are optimized for energy efficiency and performance through advanced direct liquid cooling. The rack-scale system is built by HPE, that has extensive global experience in building large AI clusters and five decades of liquid cooling expertise, uniquely positions the company to help KDDI quickly deploy. HPE also offers an extensive infrastructure support system for complex liquid-cooled environments. Equipped with NVIDIA-accelerated networking, including NVIDIA Quantum-2 InfiniBand, NVIDIA Spectrum-X Ethernet, and NVIDIA BlueField-3 DPUs, the system delivers high-performance network connectivity for diverse AI workloads. Customers can also run the NVIDIA AI Enterprise platform on the KDDI infrastructure to accelerate development and deployment. "Our collaboration with KDDI marks a pivotal milestone in supporting Japan's AI innovation, delivering powerful computing capabilities that will enable smarter solutions, contributing to greater productivity, and further advancing technological leadership," said Antonio Neri, president and CEO of HPE. "The Osaka Sakai Data Center will benefit from HPE's industry-leading cooling expertise, which powers high-performance AI systems while significantly reducing environmental impact. We look forward to partnering with KDDI on their bold vision to unlock new possibilities for customers on their AI journeys." "We are pleased to embark on the upcoming deployment of a high-performance GPU infrastructure at our Osaka-Sakai Data Center through our collaboration with HPE," said Hiromichi Matsuda, President and CEO of KDDI. "HPE's deep expertise in supercomputing and advanced cooling technologies will be instrumental in driving the evolution of next-generation AI data centers. Together with a passionate partner like HPE, we are excited to take on the challenge of shaping a sustainable future where we coexist with AI." KDDI and HPE will continue to strengthen their collaboration to advance industry leading AI infrastructure and deliver innovative services—while enhancing energy efficiency. About HPE HPE (NYSE: HPE) is a leader in essential enterprise technology, bringing together the power of AI, cloud, and networking to help organizations achieve more. As pioneers of possibility, our innovation and expertise advance the way people live and work. We empower our customers across industries to optimize operational performance, transform data into foresight, and maximize their impact. Unlock your boldest ambitions with HPE. Discover more at About KDDI KDDI is a telecommunication service provider in Japan, offering multitude of services to individual customers through its "au", "UQ mobile" and "povo" brands, and to corporate customers through its "KDDI BUSINESS" brand. In May 2022, KDDI had stated "KDDI VISION 2030: The creation of a society in which anyone can make their dreams a reality, by enhancing the power to connect". Under this vision, KDDI is promoting its business strategy in the Mid-Term Management Strategy (FY2022–FY2025), defined as the "Satellite Growth Strategy". With a focus on 5G communications, data-driven practices, and generative AI, KDDI will accelerate business growth by providing value-added services in the growth areas of DX, finance, energy, and life transformation (LX) which encompasses five areas of future growth (Mobility, Sports/Entertainment, Web3/Metaverse, Healthcare, and Space). Placing "sustainability management" at the core, KDDI will aim to achieve the sustainable growth of society and the enhancement of corporate value together with our partners, by harnessing the "Satellite Growth Strategy" and strengthening the management base. View source version on Contacts Media Contact: Eri Sign in to access your portfolio
Business Wire
25-06-2025
- Business
- Business Wire
KDDI and HPE Join Forces to Launch AI Data Center Operations by Early 2026
LAS VEGAS--(BUSINESS WIRE)-- HPE Discover 2025 – HPE (NYSE: HPE) and KDDI Corporation today announced they are collaborating to open the Osaka Sakai Data Center by early 2026 to support startups and enterprises with NVIDIA AI infrastructure for developing AI applications and training large language models (LLMs). Through the collaboration, KDDI and HPE will deploy a rack-scale system featuring the NVIDIA GB200 NVL72 platform built by HPE, based on the latest NVIDIA Blackwell architecture, within the Osaka Sakai Data Center. The Osaka Sakai Data Center takes advantage of hybrid cooling technology, which combines air cooling and direct liquid cooling, to reduce the facility's environmental impact. Additionally, KDDI and HPE will jointly promote services delivered from the Osaka Sakai Data Center to accelerate the prevalence and adoption of AI solutions among businesses and consumers in Japan and globally. HPE supports AI sustainability with liquid cooling expertise The rapid advancement of AI technology has created a pressing need for large-scale, high-performance AI infrastructure. To address this demand, KDDI is building an AI data center in Sakai City within the Osaka Prefecture of Japan, to support accelerated development of trillion parameter generative AI models. The Osaka Sakai Data Center will support AI-related business in Japan and globally, serving organizations and individuals developing generative AI models or leveraging the system's low-latency inferencing capabilities. KDDI plans to offer cloud-based AI computing services to organizations through WAKONX, its business platform for the AI era. The NVIDIA GB200 NVL72 by HPE is a rack-scale system – inclusive of NVIDIA accelerated computing, NVIDIA networking, NVIDIA software – designed to enable large and complex AI clusters that are optimized for energy efficiency and performance through advanced direct liquid cooling. The rack-scale system is built by HPE, that has extensive global experience in building large AI clusters and five decades of liquid cooling expertise, uniquely positions the company to help KDDI quickly deploy. HPE also offers an extensive infrastructure support system for complex liquid-cooled environments. Equipped with NVIDIA-accelerated networking, including NVIDIA Quantum-2 InfiniBand, NVIDIA Spectrum-X Ethernet, and NVIDIA BlueField-3 DPUs, the system delivers high-performance network connectivity for diverse AI workloads. Customers can also run the NVIDIA AI Enterprise platform on the KDDI infrastructure to accelerate development and deployment. 'Our collaboration with KDDI marks a pivotal milestone in supporting Japan's AI innovation, delivering powerful computing capabilities that will enable smarter solutions, contributing to greater productivity, and further advancing technological leadership,' said Antonio Neri, president and CEO of HPE. 'The Osaka Sakai Data Center will benefit from HPE's industry-leading cooling expertise, which powers high-performance AI systems while significantly reducing environmental impact. We look forward to partnering with KDDI on their bold vision to unlock new possibilities for customers on their AI journeys.' 'We are pleased to embark on the upcoming deployment of a high-performance GPU infrastructure at our Osaka-Sakai Data Center through our collaboration with HPE,' said Hiromichi Matsuda, President and CEO of KDDI. 'HPE's deep expertise in supercomputing and advanced cooling technologies will be instrumental in driving the evolution of next-generation AI data centers. Together with a passionate partner like HPE, we are excited to take on the challenge of shaping a sustainable future where we coexist with AI.' KDDI and HPE will continue to strengthen their collaboration to advance industry leading AI infrastructure and deliver innovative services—while enhancing energy efficiency. About HPE HPE (NYSE: HPE) is a leader in essential enterprise technology, bringing together the power of AI, cloud, and networking to help organizations achieve more. As pioneers of possibility, our innovation and expertise advance the way people live and work. We empower our customers across industries to optimize operational performance, transform data into foresight, and maximize their impact. Unlock your boldest ambitions with HPE. Discover more at About KDDI KDDI is a telecommunication service provider in Japan, offering multitude of services to individual customers through its 'au', 'UQ mobile' and 'povo' brands, and to corporate customers through its 'KDDI BUSINESS' brand. In May 2022, KDDI had stated 'KDDI VISION 2030: The creation of a society in which anyone can make their dreams a reality, by enhancing the power to connect'. Under this vision, KDDI is promoting its business strategy in the Mid-Term Management Strategy (FY2022–FY2025), defined as the 'Satellite Growth Strategy'. With a focus on 5G communications, data-driven practices, and generative AI, KDDI will accelerate business growth by providing value-added services in the growth areas of DX, finance, energy, and life transformation (LX) which encompasses five areas of future growth (Mobility, Sports/Entertainment, Web3/Metaverse, Healthcare, and Space). Placing "sustainability management" at the core, KDDI will aim to achieve the sustainable growth of society and the enhancement of corporate value together with our partners, by harnessing the 'Satellite Growth Strategy' and strengthening the management base.
Yahoo
25-06-2025
- Business
- Yahoo
CRWV vs. MSFT: Which AI Infrastructure Stock is the Better Bet?
CoreWeave CRWV and Microsoft Corporation MSFT both offer cloud infrastructure services for AI workloads. CoreWeave provides GPU-accelerated infrastructure for AI. Its cloud platform has been developed to scale, support and accelerate GenAI. Microsoft is both a major customer of CRWV and a competitor through Azure's AI services. So, if an investor wants to make a smart buy in the AI infrastructure space, which stock stands out? Let us delve a little deeper into the companies' strengths and weaknesses to see which is the better stock pick. CRWV works with NVIDIA Corporation NVDA to implement the latter's GPU technologies at scale. CoreWeave was one of the first cloud providers to deliver NVIDIA H100, H200 and GH200 clusters into production for AI workloads. The company's cloud services are also optimized for NVIDIA GB200 NVL72 rack-scale systems. CoreWeave now has a data center network with 33 data centers across the United States and Europe, supported by 420 megawatts of active power. CRWV is witnessing explosive revenue growth on strong AI demand. In the last earnings call, management highlighted that AI is forecasted to have a global economic impact of $20 trillion by 2030, while the total addressable market is anticipated to increase to $400 billion by 2028. In the last reported quarter, revenues of $981.6 million beat the Zacks Consensus Estimate by 15.2% and jumped 420% year over year. Apart from scaling capacity and getting adequate financing for infrastructure, CRWV is also expanding its go-to-market capabilities. Moreover, the buyout of the Weights and Biases acquisition has added 1,400 AI labs and enterprises as clients for CoreWeave. CRWV's strong backlog of $25.9 billion underscores its growing market share. This includes a strategic partnership with OpenAI for about $11.9 billion, while adding several new enterprise customers and a hyperscaler client. It has signed expansion agreements with many customers, including a $4 billion expansion with a big AI-enterprise customer. CRWV added that the $4 billion expansion agreement signed with a big AI client will be reflected in revenue backlog beginning in the current quarter. Nonetheless, the competitive landscape is the biggest concern. Also, higher capex can be a concern if revenues do not keep up the required pace to sustain such high capital intensity. CRWV expects capex to be between $20 billion and $23 billion for 2025 due to accelerated investment in the platform to meet customer demand. The company now guides interest expense to remain elevated, at $260-$300 million in the current quarter. CoreWeave's 77% of total revenues in 2024 came from the top two customers. This intense customer concentration is a major risk, especially if the client migrates, the revenue impact could be material. Apart from this evolving trade policy, macro uncertainty and volatility remain additional headwinds. Microsoft is one of the dominant names in the AI infrastructure space with its Azure platform, which also boasts a global data center coverage. Azure's increased availability in more than 60 announced regions globally is further strengthening the company's competitive position in the cloud computing market. Microsoft is investing aggressively in AI infrastructure, including building its own custom AI chips like Azure Maia and Azure Cobalt. In the last reported quarter, the company spent $21.4 billion on capex. It paid $16.7 billion for PP&E. MSFT highlighted that nearly half of the cloud and AI-related spend was on long-lived assets that will support monetization over the next 15 years and more. The remainder focused on servers (CPUs and GPUs) to fulfill rising AI demand, including a $315 billion customer backlog. Looking ahead to fiscal 2026, capex will grow at a slower rate than fiscal 2025, with a higher share of short-lived assets. Microsoft is the exclusive cloud provider to OpenAI, with all workloads hosted on the Azure platform. Its exclusive partnership with OpenAI gives Azure cloud priority access to leading AI models like GPT-4 Turbo, and DALL·E 3. MSFT is also embedding OpenAI's models directly into its services like Copilot, Azure and Bing. This vertical integration is aimed at creating cross-selling opportunities, allowing Microsoft to monetize AI across the stack. Another interesting development is Microsoft's NLWeb project which aims to turn websites into AI-powered applications. This open-source approach could drive adoption of Microsoft's underlying AI infrastructure while creating network effects that benefit the Azure platform. Microsoft projects revenues between $28.75 billion and $29.05 billion for the fourth quarter of fiscal 2025 for Intelligent Cloud, while for Azure, it expects revenue growth at constant currency between 34% and 35%. In Enterprise Services, revenues are forecasted to grow in mid-to-high single digits. Nonetheless, the competitive landscape remains a concern. In the past month, CRWV has skyrocketed 69% while MSFT is up 8%. Image Source: Zacks Investment Research MSFT currently carries a Zacks Rank #3 (Hold) while CoreWeave has a Zacks Rank #4 (Sell). In terms of Zacks Rank, MSFT appears to be the better pick at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report CoreWeave Inc. (CRWV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
12-06-2025
- Business
- Yahoo
Super Micro Unleashes 30+ Nvidia Blackwell AI Systems Across Europe
June 12 - Super Micro Computer (NASDAQ:SMCI) has rolled out over 30 new enterprise AI solutions in Europe built on Nvidia's (NASDAQ:NVDA) Blackwell chip architecture, aiming to speed up deployment of AI infrastructure across the region. Warning! GuruFocus has detected 4 Warning Signs with NVDA. The expanded portfolio includes systems powered by the air- and liquid-cooled NVIDIA HGX B200, liquid-cooled NVIDIA GB200 NVL72, and RTX PRO 6000 Blackwell Server Edition GPUs. The systems are designed to support enterprise-grade AI factories across varied environments, from data centers to edge networks. Supermicro said its latest offerings are optimized to deliver faster deployment timelines and energy-efficient performance through its advanced liquid cooling systems and integration with Nvidia technologies. The company has begun taking orders for the new GPU-based systems, which are available in multiple configurations to accommodate a broad range of enterprise needs. CEO Charles Liang said Supermicro's early access to Nvidia's Blackwell architecture and its global manufacturing capacity position it well to support rising demand for AI infrastructure in the region. Based on the one year price targets offered by 15 analysts, the average target price for Super Micro Computer Inc is $40.00 with a high estimate of $70.00 and a low estimate of $15.00. The average target implies a downside of -7.44% from the current price of $43.21. Based on GuruFocus estimates, the estimated GF Value for Super Micro Computer Inc in one year is $68.35, suggesting a upside of +58.18% from the current price of $43.21. This article first appeared on GuruFocus.
