CoreWeave has raised $642 million in a minority round led by Fidelity Management & Research Company at a $7 billion valuation. The updated valuation represents a significant jump from late May when the company extended its Series B at a $2 billion valuation. The secondary offering included participation from several institutional investors including Investment Management Corporation of Ontario (IMCO), Jane Street and J.P. Morgan Asset Management. Morgan Stanley advised CoreWeave on the transaction.
CoreWeave provides high-end cloud computing infrastructure targeted at AI workloads. The company is in an arms race against established cloud providers AWS, GCP and Azure at one end, and a slew of smaller and even crowd-sourced providers including Vast.ai, Runpod, and others.
To fuel its infrastructure build, CoreWeave has raised significant amounts of debt and equity in recent years, including $421 million in an extended Series B, led by Magnetar Capital, in April and May of this year. Additionally, CoreWeave secured a $2.3 billion debt financing in August, led by Magnetar and Blackstone and with participation from Coatue, BlackRock, PIMCO, and Carlyle.
This transaction along with Together AI’s $102mm Series Alast week suggest investors are still writing big checks at high valuations for Generative AI as excitement about the potential impact of the technology continues to gather steam.