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Fireworks Raises $1.5 Billion at $17.5 Billion Valuation as Companies Hunt Cheaper AI Models

Investors funded compute and engineering expansion so Fireworks can scale open‑model hosting and cut per‑token costs for enterprise customers.

Overview

  • Fireworks disclosed Thursday that it raised roughly $1.5 billion in a Series D led by Atreides Management, Index Ventures and TCV at a $17.5 billion valuation.
  • The Nvidia‑backed startup says it has surpassed a $1 billion annualized revenue run rate and now processes about 40 trillion AI tokens per day, a metric used to show developer usage.
  • The company will use the new capital to buy more GPUs, hire engineers and deepen cloud ties, especially with Microsoft and Nvidia, to grow global inference capacity.
  • Fireworks positions itself as a lower‑cost inference cloud by hosting open‑weight and third‑party models that customers can fine‑tune on their own data to cut token bills.
  • The business still faces concentration risk because Cursor supplied a large share of past revenue and has been agreed to be bought by SpaceX, which could change Fireworks' customer mix.