CoreWeave Scales Back IPO to $2.7 Billion
With Nvidia’s blessing and OpenAI as a key customer, artificial intelligence (AI) startup and cloud computing provider CoreWeave is seeking to raise approximately $2.7 billion in an initial public offering (IPO).
According to a Bloomberg report Thursday (March 20), shares of the Nvidia-backed startup are reportedly priced between $47 and $55 each. CoreWeave plans to offer about 47 million shares, with existing stockholders selling the remaining 1.8 million. At the top of the proposed range, the company could achieve a market value of $26 billion based on outstanding shares.
The IPO’s size and valuation target are lower than initially anticipated because of a broader stock market slump due to increased volatility. Previously, CoreWeave was aiming to raise about $4 billion and target a valuation exceeding $35 billion, according to a previous Bloomberg report.
The report also said the company disclosed weaknesses in internal controls related to financial reporting, citing issues such as insufficient IT controls and a lack of qualified personnel in related roles.
Founded in 2017 as a crypto mining firm, CoreWeave reported revenue of $1.9 billion in 2024, with a net loss of $863 million, Bloomberg said. Other noteworthy numbers from the SEC filing: About 77% of CoreWeave’s 2024 revenue came from its top two customers, with Microsoft making up nearly two-thirds of overall sales.
In preparation for its Wall Street debut, CoreWeave has secured two significant partnerships. The company has agreed to provide AI infrastructure to OpenAI in a contract worth up to $11.9 billion. Additionally, CoreWeave plans to acquire AI developer platform Weights & Biases for approximately 1 million shares of Class A stock.
CoreWeave’s investors include Magnetar Capital, Coatue Management, Jane Street, JPMorgan Asset Management, Fidelity and Lykos Global Management. According to Bloomberg, Cisco Systems Inc. has also agreed to invest in CoreWeave as part of a transaction valuing the company at $23 billion.
According to the SEC filing, CoreWeave CEO and Co-founder Michael Intrator is expected to retain significant control post-IPO, holding about 2% of Class A shares and nearly half of Class B shares, granting him 37% of shareholder voting power.
Bloomberg reported that Morgan Stanley, JPMorgan and Goldman Sachs are leading the IPO, with 11 other advisers also involved. CoreWeave’s shares are expected to trade on the Nasdaq under the symbol CRWV.
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