CoreWeave's IPO Raises $1.5 Billion With Valuation Cut to $23 Billion

The AI-focused cloud computing firm saw its stock debut at $39, below its $40 IPO price, highlighting investor concerns about debt and customer reliance.

CoreWeave's IPO raised $1.5 billion at a $23 billion valuation, significantly lower than its initial $35 billion target.
The stock opened at $39 on Nasdaq, below its $40 IPO price, and ended its first trading day flat after fluctuating between $37.50 and $42.
Investor concerns center on CoreWeave's $8 billion debt and reliance on Microsoft, which accounted for 62% of its 2024 revenue.
The company plans to use $1 billion of the IPO proceeds to reduce its debt, aiming to stabilize its financial position.
CoreWeave's IPO is seen as a test for the AI sector and tech IPO markets, reflecting cautious investor sentiment toward AI infrastructure investments.