Lex Wexner, the billionaire owner of Victoria’s Secret, unexpectedly gained an $800 million stake in AI startup CoreWeave from a $1 million seed investment made in 2019, which has since grown significantly as the company evolved from cryptocurrency mining to a key player in AI cloud computing. This financial success comes amid ongoing legal disputes regarding his family’s finances, particularly following the alleged theft by Jeffrey Epstein, while Wexner also engages in lucrative real estate deals to support the growing demand for data centers.
In a recent Forbes report, Lex Wexner, the billionaire owner of Victoria’s Secret, has unexpectedly gained a substantial $800 million stake in an AI startup called CoreWeave. This financial windfall stems from a $1 million seed investment made in 2019 through Wexner’s family trust, which has now ballooned into a $720 million stake in the company. CoreWeave, originally a struggling cryptocurrency miner, has transformed into a significant player in the AI cloud space, providing essential computing power for AI model training.
Wexner’s investment was facilitated by his money manager, Greg Hirs of Florence Capital, who initially invested $1 million in CoreWeave’s seed round and later added another $600,000 during the Series A round. The family trust was established for Wexner’s four children, and the investment has proven to be extraordinarily lucrative, especially as CoreWeave has raised substantial funding to expand its operations. The company has recently become one of the most valuable AI startups, with a valuation of $19 billion.
The details of Wexner’s investment and its subsequent growth were revealed in a lawsuit filed by Florence Capital, which claims it is owed a $6.9 million fee for advising Wexner’s trust on the investment. The lawsuit highlights the complexities surrounding Wexner’s finances, particularly following the alleged theft of $46 million by Jeffrey Epstein from his family’s trusts. This legal dispute has unveiled a tangled web of financial dealings and accusations involving various parties.
In addition to his stake in CoreWeave, Wexner has been actively involved in real estate, selling over $450 million worth of land in Ohio to major tech companies like Google and Meta for data center development. This strategic move aligns with the growing demand for data centers driven by the AI boom. Wexner’s real estate development firm, the New Albany Company, is well-positioned to capitalize on future opportunities in this sector, with significant investments planned in the region.
Overall, Wexner’s accidental fortune in the AI space underscores the unpredictable nature of investments and the rapid evolution of technology companies. As CoreWeave prepares for a potential initial public offering, the implications of Wexner’s investments and the ongoing legal disputes will continue to unfold, reflecting the intricate dynamics of wealth management and the tech industry’s growth. For more in-depth coverage, readers are encouraged to check out the full article on Forbes.com.
