Victoria’s Secret Billionaire’s $800 Million Stake in AI Unicorn
Discover how Les Wexner, the billionaire behind Victoria’s Secret, unintentionally secured an $800 million investment in an AI unicorn after stepping down from L Brands in 2020. The 86-year-old’s Family Trust now holds a $720 million stake in Core Weave, a company that has become one of the most valuable AI startups in the industry. Amid legal battles and accusations of financial mismanagement, Wexner’s investment has turned into a massive windfall thanks to the AI surge and strategic real estate deals. Dive into the details of this intriguing story on how an ordinary investment transformed into a significant fortune.
The Rise of Core Weave: From Cryptocurrency Miner to AI Powerhouse
- In 2019, Core Weave was a struggling cryptocurrency miner subletting graphic chips to AI startups.
- The company raised $7.5 billion in debt from Blackstone and $1.1 billion in equity to expand its data center network for AI training.
- Wexner’s money manager, Greg Hirs of Florence Capital, initially invested $1 million in Core Weave’s seed round.
- The investment grew significantly over time, turning into a $720 million stake in the AI startup.
As Core Weave evolved from humble beginnings to a high-flying AI unicorn, the significance of Wexner’s early investment became apparent. What was once a risky bet on a struggling startup has now materialized into a substantial stake in one of the most prominent players in the AI industry.
Legal Battles and Financial Drama Surrounding the Investment
- A lawsuit filed by Florence Capital advisers revealed Wexner’s $720 million stake in Core Weave.
- The legal dispute involves allegations of financial mismanagement and a mysterious $100 million stake in Core Weave made by a bankrupt hedge fund.
- Florence Capital insists on being owed a fee for the investment advice that led to the significant returns on Wexner’s investment.
The legal battle surrounding Wexner’s investment in Core Weave adds a layer of complexity to what initially seemed like a straightforward financial success story. As accusations fly and lawsuits unfold, the true extent of Wexner’s involvement in the AI unicorn becomes a subject of scrutiny and debate.
Strategic Real Estate Deals and Future Investments
- Wexner’s investment in Core Weave coincided with strategic real estate deals, selling over $450 million of land to tech giants and Wall Street powerhouses.
- With more than $15 billion in planned data center investments in the region, Wexner’s real estate holdings position him for future deals.
- His real estate development firm, the New Albany Company, still owns approximately $850 million worth of farmland in the area.
Aside from his successful investment in Core Weave, Wexner’s strategic real estate deals have further solidified his position in the burgeoning AI industry. By leveraging his holdings and expertise, Wexner is poised to capitalize on future opportunities in the evolving tech landscape.
Hot Take: The Accidental Fortune of Wexner’s AI Investment
Uncover the untold story of how Les Wexner’s $800 million stake in an AI unicorn became a reality. Despite legal battles and financial entanglements, Wexner’s strategic investments and real estate dealings have positioned him for success in the burgeoning AI industry. As Core Weave continues to thrive and rumors of an IPO circulate, Wexner’s accidental fortune stands as a testament to the unpredictable nature of investments and the potential for unexpected windfalls in the ever-changing world of tech.
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