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

Dec 03, 2023 - fortune.com
Cloud computing provider CoreWeave has sold a minority stake to investors led by Fidelity Management & Research Co., with participation from Investment Management Corp. of Ontario, Jane Street, JPMorgan Asset Management, Nat Friedman, Daniel Gross, Goanna Capital, and Zoom Ventures. The deal values CoreWeave at $7 billion. The company, which is a key player in the AI industry, has seen significant growth and market recognition due to its performance, technology advantage, and customer adoption.

Earlier this year, CoreWeave secured a $2.3 billion debt financing facility led by Magnetar Capital and Blackstone, with participation from Coatue, DigitalBridge Credit, and affiliates of BlackRock, PIMCO, and Carlyle. The company, an early adopter of Nvidia’s graphics chips for data centers, is expanding its data centers based on Nvidia’s chips to offer AI-related computing. Morgan Stanley advised CoreWeave on its minority stake sale.

Key takeaways:

  • CoreWeave, an AI startup, has closed a minority stake sale to investors led by Fidelity Management & Research Co., valuing the company at $7 billion.
  • Other investors in the deal include Investment Management Corp. of Ontario, Jane Street, JPMorgan Asset Management, Nat Friedman, Daniel Gross, Goanna Capital and Zoom Ventures.
  • The company has experienced significant growth and is recognized for its market-leading performance, technology advantage, and strong customer adoption, according to CEO Michael Intrator.
  • CoreWeave is an early adopter of Nvidia’s graphics chips for data centers and is building out data centers based on Nvidia’s chips to offer AI-related computing.
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