Cisco and Pure Storage bet on CoreWeave in $650 million secondary sale

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Cisco and Pure Storage bet on CoreWeave in $650 million secondary *****

CoreWeave CEO Michael Intrator appears on CNBC on July 17, 2024.

CNBC

CoreWeave, a startup that rents out Nvidia’s artificial intelligence chips to other companies, said Wednesday that it closed a $650 million secondary share *****, with Cisco and Pure Storage investing alongside financial institutions.

In the transaction, CoreWeave’s existing stakeholders are selling shares to outside investors. Bloomberg reported last month that CoreWeave was targeting a

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valuation for the deal, up from $19 billion in a $1.1 billion investment round announced in May.

CoreWeave is going head-to-head with large cloud infrastructure providers, such as

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and

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in providing Nvidia’s graphics processing units, or GPUs, to companies for AI workloads. The startup got a big boost last year, when Nvidia made an investment, and another stamp of approval after

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enlisted the company as a third-party cloud provider.

Investors have been eager to sink money into companies that are enabling generative AI, which can create text, images and videos in response to a few words of human input. The frenzy began after

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-backed OpenAI’s ChatGPT went viral in late 2022 and led to soaring demand for compute power.

“We are a company that is one of the few companies in the world that’s able to bring on this kind of infrastructure at the scale that’s required to actually make a difference,” CoreWeave co-founder and CEO Mike Intrator told CNBC’s “Squawk Box” in July.

The following month

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its H200 GPUs had become available through CoreWeave, meaning the startup was the first cloud provider to reach general availability with the graphics cards.

CoreWeave has raised $14 billion, a spokesperson said. In May, the company said it had raised $7.5 billion in fresh debt. In October, it announced a $650 million credit line.

Last week, bitcoin mining company Core Scientific said CoreWeave had signed up for

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worth of data center capacity in a deal that could be worth up to $8.7 billion over 12 years.

In addition to Cisco and Pure, investment firms including BlackRock, Coatue and Fidelity participated in CoreWeave’s secondary *****.

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#Cisco #Pure #Storage #bet #CoreWeave #million #secondary #*****

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