Data Center Startup Fluidstack In Talks For $7 Billion Valuation
- ByStartupStory | December 5, 2025
$700 Mn Round Led By Ex-OpenAI Fund Fuels AI Cloud Expansion
New York-based cloud computing startup Fluidstack is negotiating a massive $700 million funding round that could value the company at $7 billion, according to sources familiar with the discussions. Situational Awareness—a firm founded by former OpenAI researcher Leopold Aschenbrenner—is in advanced talks to lead the investment, with Alphabet Inc.’s Google considering participation and Goldman Sachs advising on the deal.
Neocloud Powerhouse Targets AI Compute Crunch
Founded in 2023, Fluidstack provides high-performance GPU clusters optimized for AI training and inference, partnering with crypto miners like TeraWulf and Cipher Mining to repurpose data centers for hyperscale cloud. The company recently announced a €10 billion AI supercomputing center in France and collaborations with Meta, Honeywell, and AI startups.
This potential raise—Fluidstack’s largest to date—reflects explosive demand for AI infrastructure amid $200 billion+ annual capex forecasts. Investors bet on Fluidstack’s ability to scale capacity rapidly using modular data centers and power purchase agreements.
Strategic Backing Amid Hyperscaler Race
Situational Awareness brings AI-native expertise; Google’s interest signals validation from cloud incumbents facing capacity constraints. Fluidstack differentiates via speed-to-deployment (3-6 months vs. 18-24 for traditional builds) and cost efficiency (crypto repurposing).
Competitors like CoreWeave ($23B valuation), Crusoe ($2.8B), and Lambda Labs vie for similar funding, but Fluidstack’s European push and miner partnerships provide edge.
Massive Implications For AI Infrastructure
A $7B valuation would rank Fluidstack among top neoclouds, unlocking resources for 1GW+ deployments. Europe’s regulatory support (France’s nuclear capacity) accelerates timelines.
Challenges: energy sourcing, interconnection delays. Strengths: execution speed, strategic alliances.
Fluidstack’s talks underscore AI compute as venture’s hottest category—trillion-dollar infrastructure race where speed wins market share.
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