Nvidia will reportedly anchor the much-anticipated initial public offering of CoreWeave at $40 per share with a $250 million order, according to sources familiar with the matter. This direct intervention comes as CoreWeave priced its IPO at $40 per share, substantially below the earlier projected range of $47 to $55 per share.
CoreWeave raised about $1.5 billion by selling 37.5 million shares, fewer than the 49 million originally planned, placing its valuation near $23 billion on a fully diluted basis.
The company’s foundation is atypical for a cloud provider: it was founded in September 2017 as a cryptocurrency miner before pivoting to offering cloud infrastructure services. Today, it generates revenue by giving clients access to data centers that develop and run AI models.
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The stakes are high for Nvidia, given that CoreWeave depends almost exclusively on Nvidia’s chip technology. Industry watchers note that Nvidia’s involvement could be viewed as propping up the IPO of a customer essential to its own business interests.
Among the risk factors outlined in CoreWeave’s IPO filing, its $8 billion debt stands out. Last year, 32% of the company’s net cash was used to service this debt, signaling potential challenges to its long-term financial stability.
Another point of uncertainty is its reliance on Microsoft, which accounted for 62% of CoreWeave’s $1.9 billion in revenue in 2024.
A factor that has also drawn scrutiny is the company’s sizable net loss of $863 million last year, which CoreWeave attributes to investments necessary for growth. The firm believes that continued spending is crucial to refine its product offerings and keep up with the breakneck pace of technological change in AI. However, some analysts question whether these investments will yield swift enough returns to satisfy an already skeptical market.
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