Will Monolith AI Buyout Boost CoreWeave's Industrial Cloud Strategy?

In a major move to strengthen its position in the global AI infrastructure market, CoreWeave, Inc. (CRWV) has signed an agreement to acquire Monolith AI Limited, known for applying AI and machine learning to solve complex physics and engineering problems. This move not only creates buyout synergies for CRWV but also for users, as it aims to develop a comprehensive AI platform that helps enterprises significantly reduce R&D cycles, speed up product design, and reach new levels of efficiency and innovation.

By integrating Monolith’s simulation and test-based machine learning with CoreWeave’s specialized AI cloud, the combined organization is positioned to offer a comprehensive AI platform tailored for industrial and manufacturing firms. It aims to foster a seamless AI-enabled environment where engineers can utilize advanced AI tools directly within their workflows. The synergy of Monolith’s software strengths and CRWV’s infrastructure enables enterprises to speed up innovation and shorten time-to-market, which is crucial for maintaining a competitive edge.

For CRWV, the acquisition builds on its previous strategic moves, including the acquisition of OpenPipe (focused on reinforcement learning) and Weights & Biases, a leading platform for model iteration and experiment tracking. Additionally, acquiring Core Scientific Inc. is likely to expand CRWV’s infrastructure footprint and lower lease obligations, boosting operational efficiency and financial flexibility.

Furthermore, Monolithic positions CoreWeave to expand its AI capabilities into mainstream automotive design and manufacturing, enabling faster, smarter, and more efficient vehicle development. Other industrial sectors, such as Aerospace, are also expected to leverage the combined platform to accelerate R&D and innovation. However, frequent acquisitions increase integration risks. It already has a debt-heavy balance sheet and has raised $25 billion in debt and equity since 2024 to support capacity expansion amid surging demand for AI computing. While the capital raise allows CRWV to accelerate data center investments and meet growing AI demand, it also adds financial pressure.

Who’s Threatening CRWV’s Market Share in the AI Infra Space

CoreWeave’s fierce competitor, Nebius Group N.V. (NBIS), is dedicated to building a focused AI infrastructure business. It is quickly expanding in the AI infrastructure sector, aiming to reach 1 GW capacity by 2026. The company signed a five-year agreement with Microsoft to supply GPU capacity, valued at $17.4 billion through 2031, with the potential to increase to $19.4 billion if Microsoft boosts its demand. Unlike CoreWeave, it has grown organically, developing AI ventures such as Toloka (data labeling), TripleTen (tech education), and Avride (autonomous driving). Nebius raised its guidance for annualized run rate (ARR) revenues from the previous range of $750 million to $1 billion to the range of $900 million to $1.1 billion.

On the other hand, Microsoft (MSFT), a tech behemoth, is capitalizing on AI business momentum fueled by strong Copilot adoption and the rapid expansion of its Azure cloud infrastructure. In September, it pledged a $30 billion investment in UK AI and cloud infrastructure through 2028, including $15 billion in capital spend, to build its largest AI infrastructure, boost operations, and strengthen U.K.-U.S. tech ties.

As highlighted by Tracxn in September 2025, Microsoft has made 211 acquisitions across 96 sectors and 23 countries, including 138 in the United States. Key areas include cybersecurity, gaming, and enterprise collaboration. Its latest deal was the March 2024 acquisition of Inflection, a Palo Alto-based AI model developer for businesses.

CRWV Price Performance, Valuation and Estimates

Shares of CoreWeave have gained 206.9% in the past six months compared with the Internet Software industry’s growth of 42.7%.

In terms of Price/Book, CRWV shares are trading at 24.61X, way higher than the industry’s 6.53X.

The Zacks Consensus Estimate for CRWV’s earnings for 2025 has been revised downward over the past 60 days.

CRWV currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

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This article originally published on Zacks Investment Research (zacks.com).

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