SANTA CLARA, Calif. - Pure Storage (NYSE: NYSE:PSTG), a prominent data storage technology company, has announced a strategic investment in CoreWeave, an AI cloud services provider. This investment is aimed at propelling innovation in AI cloud services. The announcement, made today, also marks the beginning of a strategic partnership that will allow customers to utilize Pure Storage's platform within CoreWeave Cloud.
The collaboration builds on the companies' previous success with leading AI organizations and is designed to support the next wave of AI innovation. With Pure Storage's 15-year history in flash technologies and its record with top AI companies, CoreWeave is poised to enhance its cloud services.
As part of the partnership, Pure Storage's platform will be integrated into CoreWeave's dedicated environments accessed via the CoreWeave Platform. This platform is engineered for compute-intensive workloads and employs automation to maximize performance and efficiency. The joint solutions have already been implemented at supercomputing scale, involving thousands of GPUs.
Customers now have the option to choose Pure Storage for high-performance storage within CoreWeave's AI supercomputer environments. The partnership promises to deliver infrastructure capable of supercomputing scale and a unified storage platform with a 99.9999% reliability rate, ensuring fast deployment and scalability.
The flexibility offered by this collaboration allows organizations to tailor their storage solutions to meet the specific needs of their AI projects. The Pure Storage Evergreen architecture is designed to adapt and expand alongside evolving AI demands.
Brian Venturo, Chief Strategy Officer at CoreWeave, emphasized the partnership's commitment to providing high-speed performance, reliability, and flexibility for customers relying on their cloud platform to develop and deploy AI.
This strategic move is expected to empower organizations with the infrastructure necessary to manage the growing data and computational demands of large-scale AI deployments.
The information presented in this article is based on a press release statement.
In other recent news, Pure Storage reported an 11% increase in its second-quarter revenue for fiscal year 2025, reaching $764 million. The company's subscription services annual recurring revenue (ARR) also saw a 24% rise, surpassing $1.5 billion. Despite longer sales cycles for larger Evergreen deals, Pure Storage has maintained its full-year revenue target of $3.1 billion.
Analysts from Oppenheimer, TD Cowen, Needham, and Piper Sandler have provided their outlooks on Pure Storage. Oppenheimer initiated coverage of the company with an Outperform rating, citing potential gains from AI growth and unstructured data storage. However, TD Cowen, Needham, and Piper Sandler have reduced their price targets due to growth concerns, while maintaining their ratings.
In addition to these financial developments, Pure Storage has introduced next-generation Fusion architecture and AI storage-as-a-service for GPU clouds. The company also added 261 new customers in the second quarter and is focused on replacing traditional storage in hyperscaler data centers. Pure Storage's management is confident in its strategy and anticipates announcing a hyperscaler design win by the end of the year. The company's financial position remains robust with $1.8 billion in cash and investments.
InvestingPro Insights
Pure Storage's strategic investment in CoreWeave and the ensuing partnership align well with the company's strong financial position and growth prospects. According to InvestingPro data, Pure Storage boasts a market capitalization of $17.26 billion and has demonstrated impressive revenue growth, with a 10.91% increase in quarterly revenue as of Q2 2025.
An InvestingPro Tip highlights that Pure Storage holds more cash than debt on its balance sheet, suggesting a solid financial foundation to support strategic investments like the one in CoreWeave. This financial stability is crucial for funding innovation and expansion in the competitive AI cloud services market.
Another relevant InvestingPro Tip indicates that Pure Storage's net income is expected to grow this year. This projected growth could be further bolstered by the potential success of the CoreWeave partnership, which aims to capture a larger share of the rapidly expanding AI infrastructure market.
It's worth noting that Pure Storage's gross profit margin stands at a robust 71.66% for the last twelve months as of Q2 2025, reflecting the company's strong pricing power and operational efficiency. This healthy margin provides the company with the financial flexibility to invest in strategic partnerships and continue innovating in the AI storage space.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Pure Storage, providing a deeper understanding of the company's financial health and market position.
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