Fluidstack, a specialized AI data center provider, is currently in advanced negotiations to secure a $1 billion funding round. According to Bloomberg, the deal could value the startup at a staggering $18 billion, potentially led by Jane Street.
Rapid Valuation Growth
If finalized, this investment would more than double the company’s valuation in just a few months. As of December, the startup was reportedly raising $700 million at a $7.5 billion valuation. That round featured participation from notable industry figures, including the AGI-focused fund Situational Awareness—founded by former OpenAI researcher Leopold Aschenbrenner—as well as the Collison brothers of Stripe, former GitHub CEO Nat Friedman, and investor Daniel Gross.
Earlier this year, discussions were still active regarding this capital injection, with reports from The Wall Street Journal indicating that Google considered a $100 million contribution to the round as part of its broader strategy to bolster AI infrastructure.
Strategic Pivot to US Markets
The market enthusiasm for Fluidstack stems from its specialized approach to AI infrastructure. Unlike traditional hyperscalers that cater to general computing needs, Fluidstack designs data centers specifically for the demands of artificial intelligence.
A major catalyst for this growth was a $50 billion deal signed in November with Anthropic to construct custom data centers in Texas and New York. This partnership provides Anthropic with greater control over its cloud infrastructure, augmenting its existing reliance on AWS and Google Cloud. To better support this massive expansion, the company—originally a spin-out from Oxford—relocated its headquarters from the U.K. to New York.
The company’s commitment to the U.S. market has also led to a strategic withdrawal from international endeavors. Last month, Fluidstack exited a €10 billion AI project in France to concentrate resources on its domestic opportunities.
Expanding Client Roster
Beyond its landmark agreement with Anthropic, Fluidstack has built a robust portfolio of high-profile clients, including Meta, Poolside, and Black Forest Labs. The startup first gained significant industry attention through its infrastructure collaboration with Mistral AI.
Fluidstack has not issued a formal comment regarding the ongoing funding discussions.