CoreWeave nearing stake sale that will value company at $7B - Bloomberg
Justin Sullivan/Getty Images News
Nvidia-backed (NASDAQ:NVDA) CoreWeave is finalizing a minority stake sale that's expected to value the cloud service startup at $7 billion.
Fidelity Investments has agreed to purchase the largest portion of about $500 million of employee-owned shares that have been tendered, according to a Bloomberg report , which cited people familiar with the matter. JPMorgan and Goanna Capital are among the institutions that are in talks to participate in the funding round.
The update comes after Bloomberg reported late last month that Roseland, New Jersey-based CoreWeave, was in talks to raise additional capital that could value the firm as much as $8 billion.
CoreWeave last month announced it raised $2.3 billion in debt that's backed by Nvidia's artificial intelligence chips. The startup said it raised debt funding from investors including Magnetar Capital and Blackstone (BX).
CoreWeave uses Nvidia's (NVDA) graphics processors, or GPUs, to build data centers and offer artificial intelligence cloud computing as a-service.
CNBC reported in June that Microsoft (MSFT) has an agreement with CoreWeave that could see it spending potentially billions of dollars with the smaller company over several years.
The latest fund news comes after the WSJ reported Tuesday that OpenAI, the artificial intelligence company backed by billions of dollars by Microsoft (MSFT), has reportedly spoken with investors about an existing share sale that could value the company as much as $90 billion.

More on Nvidia

Nvidia Was Up 235% In 2023, Don't Expect It To Continue (Rating Downgrade)
Nvidia: Strong Buy For The Godfather Of AI
The AI Trade For Conservative Investors: Sell Nvidia And Buy ASML
Ark Invest: UiPath and Twilio over Nvidia as stocks to consider
Nvidia drops over GPU concerns is a 'buying opportunity,' Morgan Stanley says