IP Group Shares Rise on CoreWeave’s Acquisition of Portfolio Company Monolith

IP Group plc (LSE: IPO) shares have risen 2.8% on Wednesday following the announcement that its portfolio company, Monolith Ltd, is being acquired by Nasdaq-listed CoreWeave, Inc.

Monolith, an artificial intelligence (AI) software provider for engineering teams and a spin-out from Imperial College London, represents a significant holding for IP Group, with the Group owning 12.3% of the company.

The acquisition by CoreWeave, an AI Hyperscaler, signals a strong exit for IP Group and highlights the growing demand for AI solutions.

Greg Smith, Chief Executive of IP Group, commented: “The sale of Monolith marks another positive exit from our deeptech portfolio.

We're delighted with this outcome which follows the sales of Featurespace and Garrison from our deeptech portfolio…this further validates the Group's model and our expertise in identifying and supporting businesses to successful exits.”

The acquisition strengthens CoreWeave's position as a provider of AI cloud solutions tailored for industrial innovation.

By integrating Monolith's AI and machine learning capabilities, CoreWeave aims to offer a comprehensive platform that shortens R&D cycles, accelerates product development, and enables businesses to gain a competitive edge through AI-driven insights.

The company's platform is already used by major engineering firms such as Nissan, BMW, and Honeywell.

CoreWeave's strategic acquisitions include Monolith, OpenPipe (for reinforcement learning), and Weights & Biases (for model iteration and experiment tracking). The company also serves as the Official AI Cloud Computing Partner of the Aston Martin Aramco Formula One Team.

Financial terms of the transaction remain undisclosed, and the closing of the acquisition is subject to customary closing conditions.