Key insights
- Situational Awareness, a hedge fund, is seeking investment for Fluidstack at a $40 billion valuation, significantly higher than its previous rounds. This comes after Situational Awareness faced near collapse and sold assets. Fluidstack's fundraising occurs amid scrutiny of the debt-heavy neocloud sector, with CoreWeave's stock plunging. Fluidstack has secured commitments from Anthropic and financial backstops from Google.
Investing.com -- Situational Awareness, the hedge fund founded by Leopold Aschenbrenner, is seeking investor money to participate in a funding round for AI infrastructure startup Fluidstack that would value the company at $40 billion, Bloomberg News reported.
The proposed valuation is more than five times Fluidstack’s $7.5 billion valuation in a January round led by Situational Awareness, and roughly double its valuation just months ago.
The fundraising comes after Situational Awareness nearly collapsed this year when falling technology stocks triggered margin calls on its leveraged investments. The fund ultimately sold most of its public stock portfolio to Ken Griffin’s Citadel at a discount.
Fluidstack is raising money as investors scrutinize the debt-heavy neocloud sector, which provides computing infrastructure for AI workloads. CoreWeave, the industry’s most prominent publicly traded company, saw its shares plunge last week, while its debt fell to levels signaling distress.
Fluidstack has secured major commitments from AI companies, including Anthropic, which has committed to a $50 billion push to build US data centers with the startup. Google has also provided billions of dollars in financial backstops for Fluidstack-related projects, helping them secure debt financing.
A Fluidstack co-founder disputed Bloomberg’s reporting without providing further details, while a representative for Situational Awareness declined to comment.
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