As per reports, CoreWeave, a cloud provider backed by Nvidia, is in the early stages of exploring the sale of a minority stake that could potentially value the company at more than $8 billion.
The company, headquartered in Roseland, New Jersey, is collaborating with a financial advisor to offer a 10% equity share, with the estimated valuation falling within the range of $5 billion to $8 billion.
While this deal has not been confirmed yet and is still in its initial phases, CoreWeave's strategic intent is to access capital for its future growth initiatives. In 2024, CoreWeave is anticipated to generate approximately $1.5 billion in revenue.
CoreWeave holds a competitive advantage in the cloud computing industry, thanks to its unique access to advanced Nvidia chips, which are currently in high demand.
Nvidia CEO Jensen Huang mentioned the company during his earnings conference call, praising its outstanding performance.
Led by its Chief Executive Officer and co-founder, Michael Intrator, CoreWeave has successfully raised $421 million in equity during the current year. Additionally, Microsoft Corp. has committed to substantial expenditures over several years to leverage CoreWeave's cloud infrastructure.
CoreWeave has secured $2.3 billion in debt financing, with Magnetar Capital and funds managed by Blackstone Tactical Opportunities leading the financing round. Other participants in this funding effort include Coatue, DigitalBridge Credit, as well as affiliates of BlackRock, Pimco, and Carlyle, according to the company's statement.