Summary:
Crusoe Energy is in talks for a $10 billion valuation while raising $1 billion in equity and debt.
The company is a lead architect for the Stargate project, a $12 billion AI data center in Texas.
This funding could more than triple its previous $2.8 billion valuation from December.
Crusoe has raised $2.5 billion total from investors like Nvidia and Fidelity.
Recent acquisition of Atero and expansion into Europe highlight rapid growth in AI infrastructure.
Crusoe Energy Systems, a key player in powering the artificial intelligence revolution, is in discussions to secure new funding that could value the company at nearly $10 billion. This move underscores the immense resources needed to fuel the booming AI sector.
According to sources familiar with the matter, Crusoe plans to raise approximately $1 billion through a combination of equity and debt. Founded in 2018, the company has quickly become a focal point for investors eager to capitalize on AI infrastructure development.
The AI Infrastructure Boom
Crusoe is not alone in this surge. Computing service provider CoreWeave Inc. achieved a market cap exceeding $44 billion after its recent public offering, and OpenAI's CFO has hinted at expanding into infrastructure services. This trend highlights the growing demand for robust computing power to support advanced AI systems.
Major Projects and Innovations
Crusoe is the lead architect for the Stargate project, a massive AI data center campus in Abilene, Texas, developed in partnership with OpenAI and Oracle Corp. Announced with significant attention at the White House this year, this initiative, code-named Project Ludicrous, is estimated to cost around $12 billion to construct.
Funding and Growth Trajectory
The current financing round is still in its early stages, and details may change. If successful, this deal would more than triple Crusoe's valuation from its previous $2.8 billion mark in December, when it raised $600 million led by Founders Fund. To date, Crusoe has secured $2.5 billion from notable investors including Fidelity Investments, Mubadala, Nvidia Corp., Ribbit Capital, and Valor Equity Partners.
Recent Acquisitions and Expansion
In a strategic move to bolster its capabilities, Crusoe recently acquired Atero, a Tel Aviv-based company specializing in AI computing management. Terms were not disclosed. Additionally, Crusoe expanded its footprint by opening its first European site in Norway earlier this year and now operates data centers with a total capacity of 3.4 gigawatts.
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