CoreWeave Stock

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.

Microsoft has reportedly entered into an agreement with CoreWeave, a former Ethereum miner, to leverage its artificial intelligence (AI)-powered services with CoreWeave’s cloud computing infrastructure.