CoreWeave, Inc. is a cloud service provider supported by Nvidia. Michael Intrator, founder and CEO of the company, will make a gesture on March 28, 2025 during its IPO at Nasdaq Market in New York City, USA.
Brendan McDermid | Reuters
Coreweave shares opened for $39, closing on Friday with the Nasdaq debut at $40.
Cloud’s AI Sellers have raised $1.5 billion in stock sales, the largest tech IPO in the US since 2021.
CoreWeave, representing its largest technology debut in the United States for the first time in four years, has attracted the attention of investors from Wall Street to Silicon Valley. The IPO market has been close to close since the end of 2021 as the technology industry takes into account rising inflation and interest rates.
Tech stocks are not benefiting from CoreWeave. The company entered the market on a day when the Nasdaq fell almost 3%, heading for its worst quarterly performance since mid-2022. The Tech Heavy Index has dropped by 10% so far this year.
As a supplier of OpenAI, CoreWeave is one of the beneficiaries of the generator AI boom that began with the launch of ChatGPT in late 2022. MicrosoftProviding cloud services to OpenAI is CoreWeave’s biggest customer, accounting for 62% of its $1.92 billion revenue last year.
CoreWeave rents hundreds of thousands of access nvidia Graphics Processing Units for Other Large Technology and AI Enterprises Meta, IBM And Coop. That toughest competition comes from top cloud vendors – Microsoft, Amazon, Google and Oracle.
CoreWeave reported a net loss of $863 million last year, a 737% increase in revenue from the previous year. This is a capital-intensive business due to the high cost of renting and operating a data center. CoreWeave raises nearly $13 billion in debt, much of which is allocated to GPUs located within lease facilities of US and overseas companies.
With plans to raise around $2.5 billion in the middle of the range after initially setting the price target from $47 to $55, CoreWeave slimmed its offerings and reflected investor skepticism.
“There are a lot of headwinds in macros,” CoreWeave CEO Michael Intrator said on CNBC’s “Squawk Box” on Friday. “And we definitely had to expand or entitle the transaction as to where the interest on the purchase was.”
In recent years, few high-tech companies have made their debut on US exchanges. There were 13 venture collateral technology IPOs in 2022, 2023 and 2024, compared to 77 recorded years in 2021 in 2022, 2023 and 2024, according to data from Jay Ritter, professor emeritus of finance at the University of Florida.
CoreWeave is the largest IPO in the US since the automation software maker uipathDebuting on the New York Stock Exchange in 2021, $1.57 billion.
Since CoreWeave filed its prospectus with the SEC on March 3, it has been followed by digital physiotherapy company Hinge Health, Swedish online lender Klarna and ticket marketplace stabu. Discord, which runs the popular chat software, has hired a bank for the IPO, reported Wednesday.
If the deal trades well, if CoreWeave arrives at NASDAQ, Mark Klein, CEO of Suro Capital, who invests in private companies, told CNBC earlier.
Data analytics firm Databricks generated partial revenue by running AI models on behalf of its clients, and announced its funding round in December at a $62 billion valuation. Openai was locked in a funding round at a $260 billion valuation last month.
CoreWeave was founded in 2017 and is based in Livingston, New Jersey. The company had 881 employees at the end of 2024. Before the IPO, the intrators controlled 38% of CoreWeave’s voting power, with Nvidia holding 1%. Other investors include fidelity and magnetaru.
On Thursday, CNBC reported that Nvidia has fixed its IPO at $40 per share on $250 million orders.
According to the prospectus, Nvidia is a customer, in addition to its leading CoreWeave suppliers and investors, as well as its customers, paying $320 million to its cloud providers.
Watch: CoreWeave opens at $39 per share after the largest US technology IPO since 2021
