4.4 C

CoreWeave backed by Fidelity and Jane Street at $7 billion valuation as cloud provider bolsters status as one of AI’s hottest startups



CoreWeave, a cloud computing provider that’s among the hottest startups in the artificial intelligence race, said it closed a minority stake sale to investors led by Fidelity Management & Research Co.

Investment Management Corp. of Ontario, Jane Street, JPMorgan Asset Management, Nat Friedman, Daniel Gross, Goanna Capital and Zoom Ventures also participated in the deal, CoreWeave said, confirming an earlier Bloomberg News report. The transaction values the company at $7 billion, said people with knowledge of the matter, asking not to be identified discussing confidential information.

“Our explosive growth trajectory has been recognized by top-tier institutional investors, and this transaction highlights the differentiation our market-leading performance, significant technology advantage, and strong customer adoption is receiving in the market,” Michael Intrator, co-founder and CEO of CoreWeave, said in an emailed statement.

The AI industry is at an inflection point, he added, noting that the company is playing a central role by providing “the most differentiated” AI infrastructure to customers.

The Roseland, New Jersey-based company earlier this year said it secured a $2.3 billion debt financing facility led by Magnetar Capital and Blackstone that also featured Coatue, DigitalBridge Credit, and affiliates of BlackRock, PIMCO, and Carlyle.

CoreWeave, which counts Nvidia Corp. as an investor, was an early adopter of Nvidia’s graphics chips for data centers, getting ahead of a wave of demand for powerful processors to run artificial intelligence applications. It’s building out data centers based on Nvidia’s chips to offer AI-related computing.

Morgan Stanley advised CoreWeave on its minority stake sale.

Subscribe to the Eye on AI newsletter to stay abreast of how AI is shaping the future of business. Sign up for free.

Source link

Subscribe to our magazine

━ more like this

One of the last small-ish Android phones looks like it’s going the way of the iPhone Mini

As phone sizes trended upward, one small device stood its ground year after year: the Asus Zenfone. That appears to be changing soon,...

Economist soothes UK legislators: No big fiscal crisis coming—except for in the U.S.

The U.S. is in danger of a fiscal crisis erupting after a ballooning in deficits in recent years, according to Olivier Blanchard, a...

Marriott Bonvoy Business Amex review: Don’t sleep on multiple free night awards and status

Our take: With perks meant to attract business owners who make Marriott Bonvoy hotels their home away from home, and with a relatively...

Facing mounting debt, three quarters of U.S. workers want to get paid every day

On-demand streaming, delivery, and, next up, on-demand compensation. The biweekly paycheck is on the cusp of disruption, although expansion plans have hit a...

Signal will soon let you share a username instead of your phone number

Signal is rolling out support for usernames on its encrypted messaging service over the next few weeks. The feature, which is still in...