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CoreWeave, a cloud computing provider thats among the hottest startups in the artificial intelligence race, said it closed a minority stake sale to investors led by Fidelity Management & Research Co.

Investment Management Corp. of Ontario, Jane Street, JPMorgan Asset Management,Nat Friedman,Daniel Gross, Goanna Capital and Zoom Ventures also participated in the deal, CoreWeave said, confirming anearlierBloomberg News report. The transaction values the company at $7 billion, said people with knowledge of the matter, asking not to be identified discussing confidential information.

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, Michael Intrator, co-founder and CEO of CoreWeave, said in an emailed statement.

The AI industry is at an inflection point, he added, noting that the company is playing a central role by providing the most differentiated AI infrastructure to customers.

The Roseland, New Jersey-based company earlier this yearsaidit secured a $2.3 billion debt financing facility led by Magnetar Capital and Blackstone that also featured Coatue, DigitalBridge Credit, and affiliates of BlackRock, PIMCO, and Carlyle.

CoreWeave, which counts Nvidia Corp. as an investor, was an early adopter of Nvidias graphics chips for data centers, getting ahead of a wave of demand for powerful processors to run artificial intelligence applications. Its building out data centers based on Nvidias chips to offer AI-related computing.

Morgan Stanley advised CoreWeave on its minority stake sale.

Read more from the original source:
CoreWeave backed by Fidelity and Jane Street at $7 billion valuation as cloud provider bolsters status as one of AIs hottest startups - Fortune