Fidelity backs cloud computing startup CoreWeave at $10.5b valuation

The news: Cloud computing startup CoreWeave has closed a minority stake sale to investors led by Fidelity Investments, valuing the company at USD7 billion ($10.5 billion), reported Bloomberg.

The numbers: Earlier this year, the US company announced it had secured a USD2.3 billion debt financing facility led by Magnetar Capital and Blackstone, with support from Coatue, DigitalBridge Credit, and affiliates of BlackRock, PIMCO, and Carlyle.

The context: The transaction, also supported by IMCO, JPMorgan Asset Management, Zoom Ventures, values the company at USD7 billion, according to unnamed sources. CoreWeave, which counts Nvidia as an investor, is building out data centres based on Nvidia's graphics chips to provide cloud infrastructure for AI training.

What they said: CoreWeave co-founder and CEO said in an emailed statement: “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."