CoreWeave IPO Priced at $40, Nvidia Orders $250M

Nvidia has plans to anchor the initial public offering (IPO) of CoreWeave at $40 per share, according to a knowledgeable source. This decision comes with a $250 million order from Nvidia, which is a significant customer of CoreWeave. CoreWeave provides remote access to computers powered by Nvidia's AI chips, making it a crucial player in the AI computing landscape.

Initially, CoreWeave had submitted a price range of $47 to $55 per share for its IPO. However, the company has decided to anchor the price at $40 per share, which is lower than the initially proposed range. This adjustment is part of a broader strategy to attract investors in a challenging IPO market. Despite the lower price, CoreWeave does not plan to reduce the size of its offering or resubmit its prospectus.

Nvidia's involvement with CoreWeave goes beyond being a customer; the tech giant also holds approximately 6% of CoreWeave's shares. This strategic investment underscores Nvidia's commitment to the AI computing sector and its belief in CoreWeave's potential. The IPO of CoreWeave is seen as a positive signal for the IPO market, which has been struggling due to high inflation and interest rates. Investors have been cautious about high-risk investments, leading to a slowdown in the IPO market over the past few years.

The IPO market has faced significant challenges, including global trade wars and economic downturns. Despite initial optimism about the potential benefits of a Trump administration for tech stocks, the market has been volatile. The IPO of CoreWeave, backed by Nvidia, could provide a much-needed boost to the market, demonstrating the continued interest in AI and technology investments.