CoreWeave Raises $1.5 Billion in Downsized IPO at $23 Billion Valuation

The AI-focused cloud provider adjusted its IPO expectations due to weak investor demand and market challenges, with Nvidia anchoring the offering with a $250 million investment.

CoreWeave reduced its IPO size, pricing shares at $40 each, down from an initial $47-$55 range, and raising $1.5 billion instead of the targeted $3 billion.
The company's valuation was lowered to $23 billion, a significant drop from its earlier $35 billion target, reflecting investor caution about unprofitable tech startups.
Nvidia, a key partner and stakeholder, anchored the IPO with a $250 million investment, underscoring its vested interest in CoreWeave's success.
CoreWeave's financial health remains under scrutiny, with $8 billion in debt, $2.6 billion in leasing liabilities, and heavy reliance on Microsoft, which accounted for 62% of its 2024 revenue.
While the company reported a 737% revenue increase to $1.9 billion in 2024, its reliance on aging Nvidia Hopper GPUs and the rapid obsolescence of AI hardware pose significant risks.