CoreWeave Valuation At $7B After Secondary Sale

AI cloud infrastructure company CoreWeave saw its valuation hit $7 billion after a minority investment of $642 million led by Fidelity Management and Research Co.

The new valuation — as reported by Bloomberg — is a significant jump from late May, when the company extended its Series B at a $2 billion valuation.

The secondary offering also included participation from Investment Management Corporation of Ontario, Jane Street, J.P. Morgan Asset Management, Nat Friedman, Daniel Gross, Goanna Capital, Zoom Ventures and others.

“Our explosive growth trajectory has been recognized by top-tier institutional investors, and this transaction highlights the differentiation our market-leading performance, significant technology advantage, and strong customer adoption is receiving in the market,” said co-founder and CEO Michael Intrator in a release.

Big money

The massive jump in valuation — and high interest from big institutional investors — seems to indicate that while some predict a cooling off in AI investment, many are still willing to write big checks at big valuations.

In another reported offering of existing shares, Thrive Capital and others are still moving forward with a tender offer to buy OpenAI employee shares at a price that values the company at $85 billion.

The big-money transaction is just the latest for CoreWeave.

In April, CoreWeave raised $221 million led by Magnetar Capital. Just weeks later, CoreWeave raised another $200 million in a Series B extension.

Then in August, CoreWeave raised a $2.3 billion debt facility led by Magnetar and Blackstone and collateralized by chips from Nvidia — also an investor in the company.

Founded in 2017, the company has raised a total of nearly $3 billion in debt and equity.

The specialized cloud provider — which actually started out as an Ethereum mining operation — offers flexible infrastructure with better processing needed to train large language models for AI.