CoreWeave Completes $1.5 Billion IPO at $40 Per Share Valuation
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TLDR CoreWeave raised $1.5 billion in its IPO, pricing shares at $40 each The company downsized its offering from 49 million to 37.5 million shares Nvidia placed a $250 million order, strengthening its stake in the AI cloud firm CoreWeave has a valuation of about $23 billion on a fully diluted basis The company has deep ties to crypto through a deal with bitcoin miner CoreScientific AI cloud company CoreWeave has completed its initial public offering (IPO), raising $1.5 billion by selling 37.5 million shares at $40 each. The company initially planned to sell 49 million shares at a price range of $47 to $55 per share. The downsized offering comes amid what Bloomberg described as a “choppy stock market.” This resulted in a valuation of approximately $23 billion on a fully diluted basis, lower than the $35 billion valuation the company had initially sought. CoreWeave provides access to Nvidia graphics processing units for artificial intelligence training and workloads. The company has positioned itself as a key player in the growing AI infrastructure space. The New Jersey-based firm recorded nearly $1.9 billion in revenue last year. Despite this impressive figure, the company still reported a net loss of approximately $863 million to $900 million, highlighting the capital-intensive nature of its business model. CoreWeave’s business requires heavy investment in equipment purchases and real estate expenditures. This has contributed to its current financial situation where high revenue is paired with ongoing losses. Nvidia, which is already an investor in CoreWeave, placed a $250 million order in the offering. This move strengthens Nvidia’s stake in the AI cloud services firm and shows continued confidence in CoreWeave’s business model. Growth and Challenges The IPO represents one of the biggest tech offerings since 2021. It serves as a major test for tech startups and the…
Filed under: News - @ March 28, 2025 6:21 pm