CoreWeave Goes Public at $40 Per Share, Raises $1.5 Billion
CoreWeave, a leading AI-focused cloud provider, successfully raised $1.5 billion in its initial public offering (IPO), valuing the company at approximately $23 billion. Despite initial plans for a larger offering, the company adjusted its IPO due to stock market volatility, Bloomberg reported.
Key Highlights:
- CoreWeave scaled back its IPO, selling 37.5 million shares at $40 each, instead of the originally planned 49 million shares priced between $47 and $55.
- The company initially aimed to raise $4 billion at a $35 billion valuation but revised its targets amid challenging market conditions.
- Nvidia, a key investor in CoreWeave, placed a $250 million order in the offering, reinforcing its commitment to AI cloud services.
- CoreWeave maintains strong ties with the crypto sector through a multi-billion dollar partnership with bitcoin miner CoreScientific.
Market Context & Future Outlook
While CoreWeave reported $1.9 billion in revenue last year, the company also experienced a net loss of nearly $900 million. The decision to scale down the IPO reflects broader uncertainties in the stock market, particularly for AI-driven firms.
Nvidia, which has a vested interest in CoreWeave, has seen its stock price decline by 12% since the beginning of the year, highlighting the current volatility in the AI sector.
Despite these challenges, CoreWeave’s strong position in AI cloud computing and strategic partnerships suggest long-term growth potential. The company’s collaboration with CoreScientific underscores its ambitions to expand further into AI-driven infrastructure, catering to the increasing demand for high-performance computing solutions.
CoreWeave Goes Public at $40 Per Share, Raises $1.5 Billion in Downsized IPO
AI giant Nvidia anchors the offering with a $250 million investment.
March 28, 2025 – Cloud computing firm CoreWeave successfully raised $1.5 billion in its initial public offering (IPO), valuing the company at approximately $23 billion. The firm initially aimed for a $4 billion raise at a $35 billion valuation but had to scale down due to unfavorable market conditions.
Despite the reduced size, the IPO marks a significant milestone for the AI-focused cloud provider, which has gained prominence by offering high-performance computing solutions tailored for artificial intelligence, machine learning, and blockchain applications.
Market Challenges Force IPO Adjustment
CoreWeave originally planned to sell 49 million shares at a price range of $47 to $55 but ultimately settled for 37.5 million shares at $40 each. The adjustment reflects broader uncertainty in the tech and AI sectors, which have faced headwinds due to rising interest rates and investor caution.
The company reported $1.9 billion in revenue last year but still faced a net loss of nearly $900 million, highlighting the challenges of scaling AI infrastructure businesses.
Nvidia Strengthens Its Stake in AI Cloud Services
Among the biggest backers of CoreWeave is Nvidia, the semiconductor powerhouse known for its dominance in AI chips. Nvidia placed a $250 million order in the IPO, reinforcing its partnership with CoreWeave and securing a stake in the firm’s future growth.
This move aligns with Nvidia’s broader strategy of supporting companies that expand the use of its GPUs in cloud computing and AI workloads. Despite CoreWeave’s growth potential, Nvidia itself has seen a 12% decline in stock price since the beginning of 2025, reflecting broader investor concerns around the AI sector.
