- CoreWeave, backed by Nvidia (NVDA), plans to price its IPO shares at $47 to $55, aiming to raise $2.3 billion to $2.7 billion, with potential to increase if demand is strong.
- The AI startup’s 2024 revenue hit $1.92 billion, up from $228.9 million in 2023, though its net loss grew to $863.4 million from $593.7 million, with two-thirds of revenue from Microsoft (MSFT).
- Competing with Azure and AWS, CoreWeave’s IPO, led by Morgan Stanley (MS), JPMorgan Chase (JPM), and Goldman Sachs (GS), will trade as CRWV on Nasdaq (^IXIC), capitalizing on the AI infrastructure boom.
CoreWeave, an Nvidia-backed artificial intelligence startup, is gearing up to make a significant splash in the public markets, with Reuters reporting that the company plans to price its initial public offering shares between $47 and $55, according to sources familiar with the matter. This valuation, set to kick off marketing efforts this week, positions CoreWeave to raise between $2.3 billion and $2.7 billion, a range that could climb higher if investor appetite proves robust, as noted by the publication’s sources. The move underscores the escalating demand for AI infrastructure, an area where CoreWeave has carved out a niche since its founding in 2017, delivering data center access and high-powered chips – predominantly from Nvidia (NVDA) – to power AI workloads for clients like Meta (META), IBM (IBM), and Microsoft (MSFT).
The financial trajectory of CoreWeave, as detailed in its March IPO filing, reveals a company riding the AI boom with revenue soaring to $1.92 billion in 2024 from $228.9 million the previous year, though its net loss also widened to $863.4 million from $593.7 million in 2023. Microsoft, accounting for roughly two-thirds of that revenue, highlights CoreWeave’s deep ties to major tech players, positioning it as a formidable competitor to cloud giants like Microsoft’s Azure and Amazon’s AWS. This reliance on a single client, while a strength, also underscores the stakes as CoreWeave transitions to public ownership, with Morgan Stanley (MS), JPMorgan Chase (JPM), and Goldman Sachs (GS) steering the flotation under the Nasdaq (^IXIC) ticker CRWV.
CoreWeave’s strategic timing aligns with a market eager for AI-driven innovation, as evidenced by its share price range of $47 to $55. This valuation underscores confidence in its growth potential, despite mounting losses—a typical trade-off for tech companies scaling rapidly in capital-intensive industries. With Nvidia’s backing and a client roster boasting industry heavyweights, CoreWeave’s IPO could set a benchmark for AI infrastructure providers, balancing high revenue gains against the challenges of profitability in a fiercely competitive landscape.
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