Crusoe Aims for $10 Billion Valuation with New Funding Round

Crusoe, the developer behind OpenAI's first Stargate data center, is in discussions to raise $1 billion at a $10 billion valuation, according to The Information. This valuation is more than three times its previous valuation of $2.8 billion in December.

The company, which aims to become a significant cloud provider, plans to use the funds to purchase more AI chips and expand its data center operations. As part of its growth strategy, Crusoe has acquired Atero, a Tel Aviv-based startup specializing in software to enhance GPU efficiency.

Crusoe's revenue projections indicate rapid growth, with expectations to reach $500 million this year and $2.2 billion next year. The company is also expanding its data center footprint, with new sites planned in Amarillo, Texas, and Wyoming. By retaining some of these sites, Crusoe intends to compete directly with major cloud providers like Amazon Web Services and Oracle by renting out AI chips to its own customers.

The acquisition of Atero is expected to bolster Crusoe's cloud business, making AI chip access more efficient and cost-effective for customers. This move aligns with Crusoe's strategy to offer competitive pricing by owning its data centers and securing power deals for its facilities.