CoreWeave Inc., a New Jersey-based cloud computing startup backed by Nvidia, is set to raise approximately $2.5 billion through its initial public offering (IPO). The AI-focused firm plans to price its shares between $47 and $55 each, with its stock to be listed under the ticker symbol CRWV on Nasdaq. Ahead of its listing, CoreWeave has secured major deals, including a partnership with OpenAI valued at up to $11.9 billion.
Nvidia-backed AI cloud computing firm CoreWeave Inc. is set to go public, aiming to raise approximately $2.5 billion through its initial public offering (IPO). The company, known for its AI infrastructure solutions, will list its shares on Nasdaq under the ticker symbol CRWV, pricing them between $47 and $55 each.
Founded in 2017, CoreWeave started as a cryptocurrency mining company before pivoting to cloud computing, leveraging Nvidia’s powerful graphics chips to cater to AI-driven applications. The firm, headquartered in Livingston, New Jersey, has rapidly gained prominence in the AI cloud computing space, securing major investors such as Magnetar Capital, Coatue Management, Fidelity, and Cisco Systems.
Strong Financial Backing & Key Partnerships
CoreWeave reported $1.9 billion in revenue for 2024, though it also incurred a net loss of $863 million. Despite this, investor confidence remains high, as evidenced by its recent agreements. The company has secured a deal worth up to $11.9 billion to provide AI infrastructure to OpenAI, further solidifying its position in the AI sector. Additionally, CoreWeave is acquiring Weights & Biases, an AI developer platform, for around 1 million Class A shares.
Investor Interest & Market Expansion
The IPO will also see existing shareholders offering their stakes alongside the new issuance. CoreWeave’s largest investors include Nvidia, which holds 1.2% of voting power, and Magnetar, which controls 7.2%. Meanwhile, CEO and co-founder Michael Intrator retains significant influence with 38% voting power across Class A and Class B shares.
The AI cloud firm has been expanding its footprint aggressively, closing a $650 million credit facility in October 2024 with JPMorgan Chase, Goldman Sachs, and Morgan Stanley. Additionally, Cisco Systems recently invested in CoreWeave, valuing the firm at approximately $23 billion.
Challenges & Future Prospects
Despite its rapid growth, CoreWeave has highlighted internal financial reporting weaknesses in its filings with the U.S. Securities and Exchange Commission (SEC). The firm cited insufficient IT controls and a lack of qualified personnel in key financial roles as areas of concern.
As CoreWeave prepares for its Nasdaq debut, the company remains focused on expanding its AI cloud infrastructure, which has been instrumental in supporting companies like Microsoft and OpenAI. With the growing demand for AI-powered computing, CoreWeave’s IPO is expected to attract significant attention from investors looking to capitalize on the AI revolution.
