AI startup CoreWeave launches $2.7 billion IPO
CoreWeave Inc., a rapidly growing AI-focused cloud provider, aims to raise up to $2.7 billion in its IPO, per an SEC filing.
The Nvidia-backed company, along with some of its existing investors, is offering shares at a price range of $47 to $55 each. Of the total shares being sold, CoreWeave itself is offering approximately 47 million, while existing shareholders are selling 1.8 million, reports Bloomberg.
At the upper end of the price range, CoreWeave’s market valuation would reach $26 billion based on the outstanding shares listed in the filing. On a fully diluted basis, the valuation could reach as high as $32 billion.
Despite the strong IPO plans, the offering size and valuation target are lower than initial expectations. Earlier reports indicated that CoreWeave was aiming to raise about $4 billion with a valuation exceeding $35 billion. However, recent stock market volatility has tempered investor sentiment.
Financial Performance and Major Partnerships
CoreWeave reported revenue of $1.9 billion in 2024, but it also posted a net loss of $863 million. This marks a sharp increase from 2023, when revenue stood at $229 million with a net loss of $594 million.
A significant portion of CoreWeave’s revenue is concentrated among its top customers. In 2024, about 77% of total revenue came from just two clients—one of which was Microsoft, accounting for nearly two-thirds of the company’s total sales.
Ahead of its IPO, CoreWeave secured two major deals. The company has signed an agreement to provide AI infrastructure to OpenAI in a deal worth up to $11.9 billion. As part of the agreement, CoreWeave will receive $350 million in company stock.
In addition, CoreWeave has announced the acquisition of AI developer platform Weights & Biases, paying approximately 1 million shares of its Class A stock. The acquisition is expected to close in the first half of 2025.
Company Background and Investor Landscape
Founded in 2017 as a cryptocurrency mining company, CoreWeave has since transitioned into cloud computing with a focus on AI workloads. The company is led by co-founder and CEO Michael Intrator.
In addition to Nvidia, CoreWeave’s investor base includes Magnetar Capital, Coatue Management, Jane Street, JPMorgan Asset Management, Fidelity, and Lykos Global Management.
Market analysts will closely watch how investors react to CoreWeave’s IPO pricing and whether the company decides to adjust its offering size or price range in response to market demand.
Reminder, crypto exchange Gemini, founded by Tyler and Cameron Winklevoss, is reportedly considering an initial public offering (IPO), according to sources. While the firm has not yet reached a final decision, the IPO could take place as early as this year.
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