Overview

• CoreWeave priced its IPO at $40 per share, significantly below its initial target range of $47-$55, reflecting reduced investor demand.
• The company raised $1.5 billion in its public offering, lowering its valuation to $19 billion from the previously anticipated $35 billion.
• CoreWeave plans to use the IPO proceeds to pay down its $8 billion debt and fund expansion efforts, including operations in Europe.
• Reliance on Nvidia GPUs and revenue concentration—over 60% from Microsoft—pose risks to the company's long-term stability.
• While CoreWeave's revenue grew from $229 million in 2022 to $1.9 billion in 2023, it remains unprofitable and faces concerns about GPU obsolescence.