GPU cloud provider CoreWeave has closed a minority investment of $650 million.
Announced this week, the latest investment round was led by investors Jane Street, Magnetar, Fidelity Management & Research Company, and entities administered by Macquarie Capital.
The secondary sale also saw additional participation from Cisco Investments, Pure Storage, funds, and accounts managed by BlackRock, Coatue, Neuberger Berman, and others.
"The support from some of the leading financial institutions and technology innovators demonstrates the strength of and confidence in our AI Cloud platform from the market," said Mike Intrator, CEO and co-founder of CoreWeave. "The recognition from both institutional and strategic investors underscores our position as a leading AI hyperscaler to build, train, and serve some of the most significant AI workloads running today."
CoreWeave engaged Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC in connection with this transaction.
CoreWeave was founded in 2017 as a cryptomining firm but now offers access to GPUs for AI applications. The company has plans to open 28 data centers globally by the end of 2024, and 10 more in 2025.
The company has raised billions of dollars in equity funding and billions more in debt financing in the last two years to fund its expansion plans. Microsoft is a major user of the platform, and could spend as much as $10 billion on its cloud by the end of the decae.
CoreWeave is reportedly planning to go public in 2025; it is estimated the company is currently valued at somewhere around $23 billion.
