(Bloomberg) -- CoreWeave, a cloud computing provider that’s among the hottest startups in the artificial intelligence race, is finalizing a minority stake sale that values the company at $7 billion, according to people with knowledge of the matter.  

Fidelity Investments has agreed to buy the largest portion of the roughly $500 million of employee-owned shares that have been tendered, said the people, who asked not to be named discussing confidential talks. JPMorgan Asset Management and Goanna Capital are among institutions in talks to participate, some of the people said. Terms haven’t been finalized and could still change, they added.

Roseland, New Jersey-based CoreWeave, which previously specialized in ethereum mining, is projected to achieve about $1.5 billion in revenue in 2024, Bloomberg News reported last month. 

Representatives of Coreweave and Goanna declined to comment, while Fidelity and JPMorgan had no immediate comment. 

Last month CoreWeave secured $2.3 billion in debt financing led by Magnetar Capital and funds managed by Blackstone Tactical Opportunities that included participation by Coatue, DigitalBridge Credit and affiliates of BlackRock, Pimco and Carlyle Group Inc..

CoreWeave was an early adopter of Nvidia Corp. graphics chips for data centers, getting ahead of a wave of demand for powerful processors to run artificial intelligence applications. The company, led by Chief Executive Officer and co-founder Michael Intrator, is building out data centers based on Nvidia’s chips to offer AI-related computing. Nvidia has become one of the leading AI companies and has seen its stock surge almost 200% this year.  

CoreWeave has raised $421 million in equity this year, including from Nvidia. Microsoft Corp. has agreed to spend billions of dollars over several years on cloud infrastructure from CoreWeave, CNBC reported in June.

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