CoreWeave Inc. sits at the intersection of two torrid industries: high-performance computing hardware and applications such as generative AI that rely on computing power.

The Roseland, N.J., company, which raised billions in debt and equity this year from Magnetar Capital LLC, Blackstone Tactical Opportunities Fund LP, Nvidia Corp. (NVDA) and others, operates a cloud network of high-performance graphic processing units, or GPUs, that support AI, visual effects for movies and TV and other workloads.

In other words, CoreWeave has developed a niche using GPUs that are under intense demand for especially high-performance computing applications, which has led even some of the largest data center and cloud companies to outsource some of that part of their business to the company.

“Some of our best opportunistic investments have been in white spaces in between businesses or industries,” Magnetar chief investment officer and managing partner David Snyderman said, referring to companies or niches that might not attract traditional financing because of short operating history or deal structures, or instance.

“These white spaces are often high growth, niche areas that other firms may not understand, but where our flexibility and expertise enable us to roll up our sleeves, look at the underlying cash flows, and execute successful investments,” Snyderman.

As for CoreWeave’s own financing, the company’s efforts in 2023 suggest it is a capital intensive business. Magnetar co-led a $2.3 billion debt financing in CoreWeave with Blackstone in August and led $421 million in equity rounds this year, in addition to prior investments. Meanwhile, CoreWeave is reportedly exploring another minority equity stake sale at a valuation between $5 billion and $8 billion.

Bloomberg reported Aug. 30 that the business is projected to achieve about $1.5 billion in revenue in 2024 and was attempting to sell a 10% equity stake. The Information further reported Aug. 31 that the company was working with Morgan Stanley to sell about $500 million of employee stock, which would represent an 8% stake, at a roughly $6 billion valuation, or more than 12 times its projected 2023 revenue.

CoreWeave did not respond to multiple requests for comment on the apparent stake sale, and a Magnetar spokesman declined to comment.

Editor’s note: The original, full version of this article was published Sept. 11, 2023, on The Deal’s premium subscription website. For access, log in to TheDeal.com or use the form below to request a free trial.