(Reuters) -Specialized cloud provider CoreWeave is exploring a minority stake sale that values the company at as much as over $8 billion, Bloomberg News reported on Wednesday, citing people with knowledge of the matter.
CoreWeave did not immediately respond to a Reuters request for comment.
The Roseland, New Jersey-based company is working with an adviser as it looks for buyers for a roughly 10% equity stake at a valuation of between $5 billion and $8 billion, the people told Bloomberg News requesting anonymity, adding the terms have not been finalized yet.
CoreWeave is expected to achieve about $1.5 billion in revenue in 2024, the report added, citing a source.
Nvidia-backed CoreWeave has seen a boost from the generative AI boom thanks to its purpose-built cloud infrastructure at scale. It has partnerships with AI startups and cloud providers, which it also competes with, to build clusters to power AI workload.
CoreWeave has unique access to the most advanced Nvidia chips that are in short supply giving it an edge over traditional cloud providers like Microsoft, Amazon.com and Google, which are facing supply restraints while working on developing their own chips.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Shailesh Kuber)