CoreWeave Raises $1.5 Billion in Downsized IPO, Valued at $23 Billion

CoreWeave, a prominent AI cloud company, has successfully completed its initial public offering (IPO), raising $1.5 billion by selling 37.5 million shares at $40 each. This offering was downsized from the initial plan to sell 49 million shares at a price range of $47 to $55 per share. The company's valuation on a fully diluted basis stands at approximately $23 billion, which is lower than the initially sought $35 billion valuation.

CoreWeave provides access to Nvidia graphics processing units for artificial intelligence training and workloads, positioning itself as a key player in the growing AI infrastructure space. The company recorded nearly $1.9 billion in revenue last year but reported a net loss of approximately $863 million to $900 million, highlighting the capital-intensive nature of its business model. The high revenue paired with ongoing losses is due to heavy investments in equipment purchases and real estate expenditures.

Nvidia, an existing investor in CoreWeave, placed a $250 million order in the offering, strengthening its stake in the AI cloud services firm and demonstrating continued confidence in CoreWeave’s business model. This IPO represents one of the biggest tech offerings since 2021 and serves as a major test for tech startups and the venture capital market after an extended period with few new offerings.

CoreWeave has strong ties to the cryptocurrency industry through a multi-billion dollar deal with bitcoin miner CoreScientific. This partnership aims to expand CoreScientific’s artificial intelligence capabilities. Microsoft is CoreWeave’s biggest customer, with other clients including major tech companies like Meta, IBM, and Cohere, showcasing the firm’s ability to attract high-profile business partners.

A week after filing to go public, CoreWeave announced a contract with OpenAI worth up to $11.9 billion over five years. As part of this deal, OpenAI agreed to buy $350 million in CoreWeave stock. CoreWeave’s shares are set to start trading on the Nasdaq on Friday, March 28, 2025, under the ticker symbol “CRWV.”

Morgan Stanley, J.P. Morgan, and Goldman Sachs & Co. are acting as joint lead bookrunners for the offering, helping manage the public offering process. CoreWeave is competing with some of the biggest tech companies in the world, including Amazon, Microsoft, and Google, which are the three leading providers of public cloud infrastructure in the United States.

The IPO comes at a time when some AI-focused firms have seen weakness in their stock prices. The successful completion of the IPO underscores the continued interest and investment in the technology sector, despite recent market volatility. CoreWeave’s IPO marks a significant milestone for the company, providing it with the necessary capital to continue its growth and expansion in the AI and cloud computing sectors.