(Bloomberg) — Corewave, a cloud computing provider that is becoming one of the hottest startups in the artificial intelligence race, is exploring a minority stake sale that could value the company at $8, according to people with knowledge of the matter. billion or more. Case.
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The Roseland, New Jersey-based company, which previously specialized in Ethereum mining, is working with an advisor as its management team seeks buyers for a roughly 10% equity stake at a valuation of between $5 billion and $8 billion. Doing, people said. Anonymity was requested discussing the confidential conversation. He added that the terms have not been finalized and are still subject to change.
CoreWeave is projected to generate about $1.5 billion in revenue in 2024, said a person with knowledge of the matter.
A Corwave representative declined to comment.
Nvidia Corp. for CoreWeave data centers was an early adopter of graphics chips, getting ahead of the wave rolling through the technology. Some of the biggest names in the industry have realized the potential for using that technology in artificial intelligence training, leading to a flood of orders for Nvidia, which unveiled plans for the world’s fastest AI supercomputer.
CoreWeave is building data centers based on Nvidia’s chips to offer artificial intelligence computing as a service. Earlier this month, Nvidia CEO Jensen Huang name-checked the company on his earnings conference call, saying it was doing “incredibly well.”
Led by CEO and co-founder Michael Intrater, CoreWeave has raised $421 million in equity this year, including Nvidia, valuing it at more than $1.2 trillion. CNBC reported in June that Microsoft Corp has agreed to spend billions of dollars over several years on cloud infrastructure from CoreView.
CoreWeave said earlier this month it secured $2.3 billion in debt financing led by a fund managed by Magnetar Capital and Blackstone Tactical Opportunities. The company said Coteau, DigitalBridge Credit and affiliates of BlackRock, Pimco and Carlyle also participated.
– With assistance from Ian King.
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Source: finance.yahoo.com
