Nvidia is set to anchor CoreWeave’s initial public offering (IPO) at $40 a share with a $250 million order, according to a source familiar with the matter. The IPO was initially priced between $47 and $55 per share. However, discussions with investors suggest the company may downsize its offering, but no final decision has been made.
CoreWeave is scheduled to go public on Friday. The company has yet to respond to CNBC’s request for comment. Nvidia, a major customer of CoreWeave, rents remote access to computers powered by Nvidia’s artificial intelligence (AI) chips. Nvidia also owns about 6% of CoreWeave but declined to comment on the $250 million order.
This IPO comes at a crucial time for the IPO market, which has been nearly dormant for more than three years. High inflation and interest rates led investors to avoid riskier bets, effectively stalling IPO activity. CoreWeave’s IPO is seen as a positive sign for a market that has been struggling to gain momentum.
Despite optimism that President Donald Trump’s second term would boost technology stocks, the sector has faced a challenging start. Tariffs have triggered a global trade war, while recession concerns have weighed heavily on the market. As a result, the tech-heavy Nasdaq is down 7% this year.
CoreWeave’s upcoming IPO joins a growing list of companies looking to go public, signaling a potential revival for the IPO market. Other companies preparing for their debut include ticket reseller StubHub, health tech company Hinge Health, and online lender Klarna. CoreWeave’s debut is particularly significant for the AI industry, which continues to attract major investment from technology giants.
CoreWeave was founded in 2017 as Atlantic Crypto, providing infrastructure for mining the Ethereum cryptocurrency. When digital currency prices fell, the company pivoted by acquiring more graphics processing units (GPUs) and rebranded as CoreWeave to focus on AI.
According to CoreWeave’s IPO prospectus, the company expects 2024 revenues to surge by over 700%, reaching $1.92 billion. Despite this growth, CoreWeave is projected to report a net loss of $863.4 million. The company also revealed that 77% of its revenue is derived from two customers. Microsoft is its largest client, contributing 62% of its revenue in the past year.
Additionally, CoreWeave’s prospectus highlights that the company operates 32 data centers, housing over 250,000 Nvidia GPUs. As it moves toward its IPO, all eyes will be on CoreWeave to see how it navigates the complexities of going public in an unpredictable market.
