CoreWeave Targets Government Contracts With New AI Cloud Offering

• CoreWeave joins the growing list of companies looking to capitalize on the Trump administration’s push for the use of AI by federal agencies. 
• The company said that the initiative was, in part, driven by the accelerating adoption of AI by federal agencies for training and inference.
• CoreWeave added that it has already started investing in the teams, tools, and technologies that agencies require to meet these demands.

CoreWeave (CRWV) announced on Tuesday that it is expanding its business into the U.S. federal market with ‘CoreWeave Federal’ at Nvidia’s (NVDA) GTC CPU Technology Conference.

The company said it plans to enter the federal market through a “deliberate approach” that adapts its industry-leading AI cloud platform to meet the U.S. government’s evolving cybersecurity standards and compliance requirements. 

CRWV’s stock gained 1.8% in afternoon trade, but retail sentiment on Stocktwits around the company remained in ‘bearish’ territory over the past day. The announcement comes as Core Scientific (CORZ) shareholders are being urged to vote against the company’s merger with CoreWeave, set for October 30.

CoreWeave’s Foray Into AI Government Contracts

CoreWeave said its new product is going to focus on delivering secure, compliant, high-performance AI cloud servers to U.S. government agencies and their partners, such as the Defense Industrial Base. It added that this initiative was, in part, driven by the accelerating adoption of AI by federal agencies for training and inference.

“America’s economic competitiveness and national security rely on the continued advancement of secure, high-performance AI infrastructure.”

– Michael Intrator, Co-founder, Chairman, and Chief Executive Officer, CoreWeave

The company stated that it has already started investing in the teams, tools, and technologies that agencies require to meet these demands, aligning its platform with FedRAMP and other authorizations.

Building On The U.S. Government’s Appetite For AI

In July, the Trump administration released its ‘AI Action Plan’ as a follow-up to the President’s executive order in January to increase the use of AI across federal agencies. In addition to large companies like CoreWeave and Palantir capitalizing on the opportunity, smaller startups have also been roped into the push. The Department of Defense has awarded contracts worth up $200 million each to Anthropic, Google, OpenAI, and Elon Musk’s xAI.

Read also: Nokia Shares Surge After Nvidia Announces $1 Billion Investment For Nearly 3% Stake

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