CoreWeave, a cloud computing provider that’s becoming one of the hottest startups in the artificial intelligence race, is exploring a minority stake sale that values the company at as much as $8 billion or more, according to people with knowledge of the matter.
(Bloomberg) — CoreWeave, a cloud computing provider that’s becoming one of the hottest startups in the artificial intelligence race, is exploring a minority stake sale that values the company at as much as $8 billion or more, according to people with knowledge of the matter.
The Roseland, New Jersey-based company, which previously specialized in ethereum mining, is working with an adviser as its management team seeks buyers for a roughly 10% equity stake at a valuation of between $5 billion and $8 billion, said the people, who requested anonymity discussing confidential talks. Terms haven’t been finalized and could still change, they added.
CoreWeave is projected to achieve about $1.5 billion in revenue in 2024, a person with knowledge of the matter said.
A CoreWeave representative declined to comment.
CoreWeave was an early adopter of Nvidia Corp. graphics chips for data centers, getting ahead of a wave that’s sweeping through technology. Some of the biggest names in the industry have realized the potential for the use of that technology in artificial intelligence training, causing a flood of orders for Nvidia, which has unveiled plans for the world’s fastest AI supercomputer.
CoreWeave is building out data centers based on Nvidia’s chips to offer artificial intelligence-related computing as a service. Earlier this month, Nvidia CEO Jensen Huang name-checked the company on his earnings conference call saying it’s doing “incredibly well.”
Led by Chief Executive Officer and co-founder Michael Intrator, CoreWeave has raised $421 million in equity this year, including from Nvidia, which is valued at more than $1.2 trillion. Microsoft Corp. has agreed to spend billions of dollars over several years on cloud infrastructure from CoreWeave, CNBC reported in June.
CoreWeave said earlier this month it secured $2.3 billion in debt financing led by Magnetar Capital and funds managed by Blackstone Tactical Opportunities. Coatue, DigitalBridge Credit and affiliates of BlackRock, Pimco and Carlyle also participated, the company said.
–With assistance from Ian King.
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