• CoreWeave has priced its IPO at $40 per share, significantly below initial expectations, valuing the AI cloud firm at approximately $19 billion.
  • With Nvidia as a key backer and Microsoft as its largest customer, CoreWeave’s IPO is a test for investor confidence in AI-focused cloud firms.

CoreWeave, a cloud computing company specializing in AI infrastructure, has officially priced its initial public offering (IPO) at $40 per share, significantly lower than its initial expectations.

The company had originally aimed to sell shares for between $47 and $55, which would have valued it at between $27 billion and $32 billion. Instead, the adjusted offering will consist of 37.5 million shares, raising approximately $1.5 billion and resulting in a valuation of about $19 billion, or around $23 billion on a fully diluted basis.

The decision to lower the IPO price and the number of shares offered reflects a broader trend of caution in the market, particularly concerning AI-related stocks. Initial enthusiasm for CoreWeave's IPO has waned due to a recent downturn in tech stocks and concerns over a potential AI bubble. This IPO is viewed as a critical test for the strength of the U.S. IPO market and investor appetite for new AI ventures.

CoreWeave is backed by Nvidia, which is one of its largest investors and has committed to purchasing $250 million worth of shares in this offering. The company's revenue is entirely derived from AI cloud services that run on Nvidia-powered servers, making it a pure play in the AI sector. Microsoft stands out as CoreWeave's largest customer, with a significant deal valued at up to $11.9 billion to provide AI infrastructure to OpenAI.

Trading for CoreWeave's shares is set to commence on the Nasdaq under the ticker symbol "CRWV" on March 28, 2025. Morgan Stanley, J.P. Morgan, and Goldman Sachs & Co. are serving as joint lead bookrunners for this IPO.

Despite generating impressive revenue figures—reportedly around $1.9 billion last year—CoreWeave has faced challenges, including a net loss of nearly $900 million.

Concerns about its reliance on major clients like Microsoft have also been raised; Microsoft accounted for 62% of CoreWeave's revenue last year. This heavy dependence poses risks if Microsoft were to scale back its commitments or shift towards in-house solutions for its computing needs.

Edited by Harshajit Sarmah