Nvidia-Backed CoreWeave's IPO Comes In Below Expectations At $40 Per Share

CoreWeave priced its initial public offering at $40 per share, below the expected range of $47 to $55, signaling investor caution despite demand for artificial intelligence-driven cloud computing services.

What Happened: The offering consists of 37.5 million shares, with CoreWeave selling 36.59 million and existing stockholders offloading 910,000 shares. The company granted underwriters a 30-day option to purchase up to an additional 5.63 million shares to cover over-allotments.

CoreWeave will trade under the ticker “CRWV” on the Nasdaq Global Select Market. The IPO is being led by Goldman Sachs Group Inc (NYSE:GS), Morgan Stanley (NYSE:MS), and JPMorgan Chase & Co. (NYSE:JPM) as the primary book-running managers. Trading is set to begin on Mar. 28, with the offering expected to close on Mar. 31.

CoreWeave, an AI-focused cloud computing company, has seen exponential revenue growth, reaching $1.9 billion in 2024—a 737% increase from the prior year. However, the company remains unprofitable, reporting a net loss of $863 million in 2024.

A key driver of CoreWeave's success is its strategic partnerships and customer base, which includes OpenAI, Meta Platforms Inc. (NASDAQ:META), Microsoft Corp. (NASDAQ:MSFT), and Nvidia Corp. (NASDAQ:NVDA).

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Why It Matters: Microsoft accounted for 62% of CoreWeave's revenue in 2024, raising concerns about revenue concentration. However, CoreWeave anticipates that Microsoft's share of future committed contract revenue will decline to below 50%.

Nvidia, a major supplier of GPUs for CoreWeave's AI cloud infrastructure, holds a 5.96% stake in the company pre-IPO, with expectations of a slight reduction post-offering. The semiconductor giant has committed to a $250 million anchor investment at the IPO price, while OpenAI plans to invest $350 million through a private placement after the IPO.

CoreWeave operates 32 data centers with over 250,000 GPUs dedicated to AI workloads. The company aims to expand its infrastructure, extend its enterprise reach, and pursue international growth, positioning itself as a leading AI hyperscaler amid soaring demand for compute power.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.