CoreWeave Rockets Onto Nasdaq with $1.5B IPO

Founded in 2017 as a crypto mining operation, CoreWeave has since reinvented itself as a critical infrastructure provider for the artificial intelligence boom. The company specializes in renting out high-performance Nvidia GPUs to companies building AI models, rendering workloads, and other compute-heavy applications.

The IPO had initially aimed to raise up to $2.7 billion by offering 49 million shares at a price range of $47 to $55. However, amid signs of cooling investor sentiment and a more cautious market environment, the offering was reduced to 37.5 million shares, priced at $40 each.

Despite the scaled-down fundraising, the deal still marks a major milestone in the red-hot AI sector. CoreWeave's public listing is the largest AI infrastructure IPO since Arm's blockbuster debut in 2023. The company plans to use the funds to expand its network of data centers, repay existing debt, and scale operations to meet soaring demand from enterprise clients.

“We are in the early innings of a transformative era in computing,” said Michael Intrator, CoreWeave’s co-founder and CEO, in a statement. “Our mission is to build the infrastructure powering tomorrow’s AI breakthroughs, and this IPO is just the beginning.”

One of the key backers of CoreWeave is Nvidia, which both supplies the GPUs that power CoreWeave's infrastructure and holds a 6% stake in the company. Nvidia doubled down on its support by committing an additional $250 million at the IPO price, helping to stabilize the offering.

CoreWeave's revenue skyrocketed more than 700% in 2024, reaching $1.92 billion, up from $214 million in 2023. But rapid growth has come at a steep cost. The company posted a net loss of $863.4 million last year, reflecting its aggressive investment in scaling infrastructure and acquiring compute capacity.

Investors remain divided on CoreWeave’s long-term trajectory. Some view the company as a critical enabler of the AI gold rush, providing compute capacity in a market where demand has consistently outpaced supply. Others are more cautious, citing its thin margins, rising debt obligations, and heavy reliance on a small number of customers.

According to its IPO filing, over 62% of CoreWeave's 2024 revenue came from a single customer, Microsoft, highlighting a significant concentration risk. Analysts have also raised concerns over the company’s $1.3 billion debt load, which comes with steep interest payments that consumed nearly all of its operating profits last year.

Still, market watchers say CoreWeave is uniquely positioned in the AI infrastructure race. Unlike hyperscalers like Amazon Web Services or Microsoft Azure, CoreWeave is tightly focused on GPU-based workloads and offers more flexible, usage-based pricing that appeals to startups and enterprises alike.

“CoreWeave’s agility and specialization give it an edge,” said Gina Han, an analyst at Lightspeed Equity Research. “But the company needs to diversify its customer base and start demonstrating a path to profitability soon.”

The IPO also comes at a critical time for the broader tech market. While the AI sector remains hot, investor enthusiasm has cooled somewhat compared to the peak hype of 2023. Several private AI startups have delayed their IPO plans due to valuation concerns and tightening capital markets.

CoreWeave’s successful listing — even at a lower valuation than expected — may serve as a litmus test for other AI infrastructure startups considering public debuts in 2025. Companies like Lambda Labs, Voltage Park, and Cerebras are closely watching the market’s reaction.

Shares of CoreWeave (trading under the ticker symbol “CRWV”) began trading Thursday on the Nasdaq and remained relatively stable in early action, a sign that the more conservative pricing helped avoid the volatility seen in some recent tech IPOs.

With its IPO now behind it, the pressure is on for CoreWeave to deliver on its bold promises in a fiercely competitive landscape. As the AI arms race accelerates under President Trump’s second term and a renewed focus on domestic tech leadership, infrastructure providers like CoreWeave may find themselves at the heart of America’s digital future.