CoreWeave Files for IPO After Record Revenue, $863M Loss
1min read AI cloud provider CoreWeave has filed for an initial public offering (IPO) after a breakout year, marking a significant milestone in the tech industry. The New Jersey-based company, which shifted its focus from crypto mining to AI infrastructure six years ago, officially submitted its S-1 registration filing to the U.S. Securities and Exchange Commission (SEC) on Monday. morgan stanley, goldman sachs, and jpmorgan have been named as lead underwriters for the IPO.
CoreWeave's financial performance has been nothing short of impressive. The company reported $1.9 billion in revenue for fiscal 2024, representing a staggering 737% increase compared to 2023. Despite this growth, CoreWeave recorded an $863.4 million net loss, reflecting substantial infrastructure investments and interest expenses on nearly $8 billion in debt. The company's most recent quarterly results showed $747.4 million in revenue with a 76% gross margin and $112.7 million in operating income. CoreWeave also disclosed $15.1 billion in unfulfilled contract obligations, providing significant revenue visibility.
However, some industry experts have raised concerns about the sustainability of CoreWeave's revenue growth. Jeffrey Emanuel, founder and CEO of AI-powered Layer 1 chain Pastel Network, posted on X that CoreWeave's business model relies heavily on quickly depreciating GPUs and servers, and that a shift in the market towards a GPU oversupply scenario could lead to a significant drop in underlying spot earnings.
Founded in 2017 as Atlantic Crypto by former commodities traders Michael Intrator, Brian Venturo, and Brannin McBee, the company initially mined Ethereum before strategically pivoting to AI infrastructure in 2019. This shift positioned CoreWeave to capitalize on the AI boom following OpenAI's ChatGPT release in 2022. Intrator, who currently serves as CEO, controls about 38% of voting power in the company.
CoreWeave's IPO comes at a time when demand for AI infrastructure has been booming, and the company's financial performance reflects this external trend. As the company prepares for its public debut, investors will be closely watching its ability to maintain its impressive growth trajectory and navigate potential market shifts.
