CoreWeave Files for $35B IPO Amidst AI Boom

AI infrastructure provider CoreWeave has taken a significant step towards going public by submitting its S-1 registration filing to the Securities and Exchange Commission (SEC). The company, which was previously involved in cryptocurrency mining, is now seeking an initial public offering (IPO) with an expected valuation of $35 billion. Morgan Stanley, Goldman Sachs, and JPMorgan are serving as the lead underwriters for the offering.

CoreWeave's financial performance has been impressive. The company reported revenue of $1.9 billion for fiscal year 2024, representing a 737% increase compared to 2023. Recent quarterly results show strong momentum, with $747.4 million in revenue, a 76% gross margin, and $112.7 million in operating income. However, the company also reported an $863.4 million net loss, which it attributes to heavy infrastructure investments and interest expenses on nearly $8 billion in debt.

The company's future revenue stream appears stable, with $15.1 billion in unfulfilled contract obligations. This suggests a strong pipeline of future business, indicating that CoreWeave's transformation from a crypto mining operation to an AI infrastructure provider has been successful.

The story of CoreWeave began in 2017 when three former commodities traders – Michael Intrator, Brian Venturo, and Brannin McBee – founded the company under the name Atlantic Crypto. Initially, the company focused on mining Ethereum. In 2019, the founders made a strategic decision to pivot towards AI infrastructure, a move that proved timely as the demand for AI computing resources increased following the release of OpenAI's ChatGPT in 2022.

Some industry observers have expressed concerns about the company's future, particularly regarding the potential risks related to GPU oversupply. However, CoreWeave has not publicly responded to these concerns. The company's market strategy, as revealed in the IPO filing, involves identifying gaps in the cloud provider market and offering limited compute options at high prices.

The timing of CoreWeave's IPO filing comes during a period of increased interest in AI technology. As the company moves towards becoming a public entity, it aims to capitalize on this momentum and solidify its position in the AI infrastructure market.