CoreWeave IPO Underwhelms, Closing at $40 After Downsized Offering

The Nvidia-backed AI infrastructure company raised $1.5 billion, falling short of its initial targets, as concerns grow over debt, revenue concentration, and market volatility.

CoreWeave's IPO raised $1.5 billion at a $23 billion valuation, significantly below its initial $35 billion target.
Shares debuted at $39, below the $40 IPO price, fluctuated throughout the day, and closed flat at $40.
The company plans to allocate $1 billion of the proceeds to reduce its $8 billion debt burden.
CoreWeave's 2024 revenue surged 737% to $1.9 billion, but it posted a net loss of $863 million, raising profitability concerns.
Investor skepticism centers on CoreWeave's heavy reliance on Nvidia GPUs and Microsoft, which accounted for 62% of its 2024 revenue.