On a day when it seemed as though all of Wall Street was buzzing about the multibillion partnership between OpenAI and AMD (AMD), AI hyperscaler CoreWeave (CRWV) also announced a deal, although it didn’t get quite the fanfare as the other blockbuster transaction.
The company said late on Monday that it had acquired Monolith, a UK-based software startup that produces machine learning solutions to help engineers with product development.
CoreWeave said in a press release that the companies will merge Monolith’s “test-driven machine learning capabilities” with CoreWeave’s AI cloud services in order to offer a full-stack platform that can be used by industrial and manufacturing companies.
The goal of the endeavor is to make R&D cycles more efficient, while also speeding up the product development and design stage for companies.
“Every leader we meet across the industrial and manufacturing sectors knows AI can transform their business,” Brian Venturo, co-founder and chief strategy officer CoreWeave, said in a statement.
“What they need are the right tools to use the technology to solve intractable physics and engineering problems. Those challenges have historically slowed industrial innovation, and Monolith has closed that gap.”
CoreWeave cited a study published by McKinsey & Co. in June indicating that for some “industries that produce complex manufactured products, R&D processes could be accelerated by 20 to 80 percent” through the use of AI.
McKinsey estimates that the potential economic value by utilizing AI in the R&D cycle could be between $360 billion to $560 billion.
CoreWeave is on a spending spree
Monolith’s platform has been used by engineering teams at BMW, Nissan and Honeywell International (HON).
“Monolith was founded to put AI directly into the hands of engineers, enabling them to create breakthrough technologies,” Dr. Richard Ahlfeld, founder and CEO of Monolith, said in a statement. “Joining CoreWeave will allow us to scale that mission dramatically.”
He noted that the two companies will be able to support engineering teams who are “eager to use AI but lack the infrastructure and know-how.”
Monolith’s tools provide engineers with anomaly detection, test plan optimization, and next test recommendation. Its platform allows engineers to complete tasks without having in-house AI tools or coding expertise. Terms of the deal were not disclosed.
CoreWeave has been on a dealmaking spree during its first year as a public company.
In May, it finalized its acquisition of Weights & Biases, an AI developer platform based in San Francisco. CoreWeave reportedly acquired the startup for $1.7 billion.
And then last month, the company acquired OpenPipe, which is a platform that’s used for training AI agents through reinforcement learning. Terms of the deal were not disclosed.
However, a planned $9 billion deal to acquire Core Scientific (CORZ) announced this summer has been met with resistance from some of Core Scientific’s key shareholders, who have said the deal undervalues Core Scientific and the all-stock transaction would leave shareholders vulnerable to a drop in CoreWeave's stock.
Two Seas Capital, Core Scientific’s largest shareholder, filed a preliminary proxy statement in September urging other stockholders to vote against the proposed merger.
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