BitNewsBot - 3/28/2025 12:32:22 AM - GMT (+0 )
- CoreWeave raised $1.5 billion in its IPO, valuing the company at approximately $23 billion, significantly less than its initial target of $4 billion.
- The AI cloud provider sold 37.5 million shares at $40 each, downsizing from its original plan of 49 million shares at $47-$55 each due to weaker market conditions.
- NVIDIA, an investor in CoreWeave, anchored the IPO with a $250 million order despite its own stock falling 12% this year.
AI infrastructure company CoreWeave has secured $1.5 billion in its initial public offering, achieving a valuation of approximately $23 billion, according to Bloomberg reports on Thursday. The cloud provider substantially scaled back its offering amid challenging market conditions for technology stocks.
The New Jersey-based firm ultimately sold 37.5 million shares priced at $40 each, a significant reduction from its initial ambitions. CoreWeave had originally planned to offer 49 million shares in the $47-$55 price range but faced headwinds from a deteriorating stock market environment that has been particularly tough on AI-focused companies.
The IPO represents a scaled-back version of earlier plans that had targeted raising as much as $4 billion at a $35 billion valuation. Despite generating $1.9 billion in revenue last year, CoreWeave continues to operate at a loss, with net losses approaching $900 million in the previous fiscal year.
GPU manufacturer Nvidia, which holds a stake in CoreWeave, provided significant support to the offering by committing to purchase $250 million worth of shares. This anchor investment came despite Nvidia’s own stock performance suffering a 12% decline since the beginning of 2025, as reported by The Information on Thursday evening.
CoreWeave maintains important industry connections, including a notable relationship with Bitcoin mining company CoreScientific. The miner recently entered into a multi-billion dollar agreement with CoreWeave to enhance its Artificial Intelligence capabilities, representing a significant business partnership for both firms.
The IPO follows a broader trend of cautious investor sentiment toward AI infrastructure companies, reflecting concerns about the capital-intensive nature of the business and extended timelines to profitability. Despite these challenges, CoreWeave’s successful listing demonstrates continuing investor interest in companies positioned at the intersection of cloud computing and artificial intelligence.
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