Fidelity Investments Backs Two Up-and-Coming Startups and Makes Strategic Bets on AI
Nvidia was one of CoreWeave’s initial backers, and the company began utilizing their processors for data centers well in advance of the spike in chip demand.
Leading asset management company Fidelity Investments is advancing artificial intelligence. According to a December 4 Bloomberg story, Fidelity, JPMorgan Asset Management, Nat Friedman, Jane Street, and Investment Management Corp. of Ontario led a financing round for cloud computing startup CoreWeave. According to sources, the deal values the company at $7 billion. Nvidia was one of CoreWeave’s initial backers, and the company began utilizing their processors for data centers well in advance of the spike in chip demand.
The Information revealed that Fidelity had invested in Vast Data, an AI software and storage business, on the same day. According to the latest fundraising round, the business is valued at $9 billion. Nvidia has funded the seven-year-old firm as well. According to sources, Vast Data intends to repurchase stock from current shareholders with a portion of the funds raised.
According to a report earlier in June, AI startups were competing for Fidelity Investments. In an interview, Chief Information Officer Mihir Shah stated that artificial intelligence businesses may benefit from Fidelity’s massive data repository, which included decades’ worth of online transaction records, customer call transcripts, and in-person client interaction reports. Eight petabytes of data, or trillions of printed pages, are purportedly stored on Fidelity.
Data is more in demand than ever because tech companies are vying to develop AI services. The financial data from Fidelity would be useful proprietary data to develop these customized services.