Fireworks, backed by Nvidia, completes a $1.5 billion funding round with a valuation of $17.5B

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BlockBeats news, July 16: Fireworks, an AI cloud services startup backed by NVIDIA, completed a $1.5 billion funding round at a valuation of $17.5 billion. This round was led by Atreides Management, Index Ventures, and TCV, with participation from NVIDIA, Evantic, Lightspeed Venture Partners, and others.

Fireworks primarily provides developers with hosting and running open-source AI models. Its annualized revenue has already exceeded $1 billion, which is 5 times that of the same period last year. CEO Lin Qiao said that more and more companies are turning to open-source models due to cost pressures, and that Fireworks offers models of comparable quality at 5 to 10 times lower cost than closed-source models.

Fireworks supports models from companies including DeepSeek, MiniMax, and Zhipu AI, and has established a partnership with Microsoft, leveraging services powered by more than 20 compute providers, including Microsoft. The company currently processes about 400 trillion AI Tokens per day, and has started providing GPUs for training AI models.

About half of Fireworks’ revenue last year came from the AI programming company Cursor. Its customer mix is now more diversified, with other customers including Elastic, GitLab, and MongoDB. The new funding will be used to purchase more GPUs, expand its sales team, and hire technical personnel. The company plans to increase headcount from about 200 to 600 by the end of 2026.

NVDA-2.41%
ZHIPU AI-9.31%
MSFT0.82%
MDB-2.20%
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