Cloud computing star CoreWeave gears up for IPO: backed by top investment banks, valued at $23bn
AInvestMonday, Nov 4, 2024 10:20 pm ET
1min read
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Cloud computing provider CoreWeave, a hot startup in the artificial intelligence sector, has selected Morgan Stanley, Goldman Group and JPMorgan Chase to lead its upcoming initial public offering (IPO) and plans to go public next year, according to people familiar with the matter, who asked not to be named as the information is confidential and IPO preparations are ongoing, which may attract more banks.

The IPO plans of CoreWeave come as the market expects the US IPO market to recover to pre-pandemic levels, with many companies preparing for a 2025 listing. The company has already received support from tech giants such as Cisco (CSCO.US) and was valued at $2.3 billion in a funding round.

Founded by Michael Intrator, CEO and co-founder, the company has attracted investors including Nvidia (NVDA.US), Magnetar Capital, Coatue Management, Jane Street, JPMorgan Asset Management and Fidelity since its inception in 2017 as a cryptocurrency mining company.

As an early adopter of Nvidia's data center graphics chips, CoreWeave is building data centers based on Nvidia chips to meet the demand for powerful processors needed to run AI applications. Last month, the company completed a $650 million credit financing led by Morgan Stanley, Goldman and JPMorgan Chase and expects to open 28 global data centers by the end of this year, with plans to add 10 new data centers in 2025.

Overall, CoreWeave, as a leader in the AI sector, is actively preparing for its IPO while expanding its data center scale based on Nvidia chips to meet the global demand for AI computing power. After receiving support from tech giants and completing a large credit financing, CoreWeave is steadily moving towards becoming a global leader in cloud computing.

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