CoreWeave, a data center company backed by Nvidia, has acquired Weights & Biases, a platform for developing AI applications, in a deal with an undisclosed financial value. The acquisition highlights the growing demand for alternative cloud solutions, as CoreWeave continues to expand its presence in the market, following its recent notable investments.

As reported by The Information, the acquisition is believed to have cost CoreWeave approximately $1.7 billion. Weights & Biases, which was valued at $1.25 billion in 2023, had been preparing for an initial public offering (IPO) before the acquisition.

Founded in 2017 by Lukas Biewald, Chris Van Pelt, and Shawn Lewis, Weights & Biases has established itself as a leading provider of tools for AI application development. The company’s solutions are currently used by over 1,400 organizations worldwide, including prominent names such as AstraZeneca and Nvidia, to train and fine-tune AI models.

According to CoreWeave, the acquisition will enable the company to offer its cloud services and infrastructure customers a comprehensive application development workflow, thereby accelerating their AI development roadmaps and facilitating the faster deployment of innovations to the market.

Following the acquisition, Weights & Biases’ customers will retain the flexibility to deploy their workloads as they prefer, as stated by CoreWeave in a press release announcing the deal.