CoreWeave Stock

CoreWeave, a startup that powers AI tools by providing GPU resources, completed a minority stake sale to investors. The sale was led by investment firm Fidelity Management & Research Co. Several investment firms were among the participants in the deal including Investment Management Corp., Goanna Capital, and JPMorgan Asset Management. Bloomberg said the value of the company sits at $7 billion following the sale. CoreWeave CEO Michael Intrator said the company offers “the most differentiated” AI infrastructure to customers.

CoreWeave, a cloud computing provider that’s among the hottest startups in the artificial intelligence race, is finalizing a minority stake sale that values the company at $7 billion, according to people with knowledge of the matter. Fidelity Investments has agreed to buy the largest portion of the roughly $500 million of employee-owned shares that have been tendered, said the people, who asked not to be named discussing confidential talks.

CoreWeave has quickly and improbably become one of the largest GPU providers and leaders in the arms race for AI infrastructure. It raised more than $400 million this spring from chip maker Nvidia NVDA 0.98%increase; green up pointing triangle and other investors. It secured another $2.3 billion in debt financing this summer to open data centers by essentially turning chips into financial instruments, using its stash of highly coveted Nvidia semiconductors as collateral. Now it’s racing to keep pace with the fastest software-adoption curve in history.