Nvidia Props Up Customer CoreWeave’s IPO

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.

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.


Information for this story was found via Investopedia and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

First Majestic Encounters 711 g/t Silver Equivalent Over 8.0 Metres In Ongoing Exploration At Los Gatos

Silver47 Samples 44.5 g/t Gold, 3,037 g/t Silver & 8.56% Copper At Kennedy Project In Nevada

Related News

Green Energy SPAC ClimateRock Prices US$75 Million IPO

Special purpose acquisition company ClimateRock (Nasdaq: CLRCU) started trading publicly on the Nasdaq Global Market...

Friday, April 29, 2022, 02:22:00 PM

SoftBank-Backed Chip Designer Arm Files For $70-Billion IPO

Arm, a prominent chip designer under SoftBank’s ownership, has initiated the final countdown to its...

Tuesday, August 22, 2023, 09:53:00 AM

Fashion Brand Lulus Prices US$92 Million IPO

Women’s fashion brand Lulu’s Fashion Lounge Holdings, Inc. (Nasdaq: LVLU), popularly known as Lulus, started...

Thursday, November 11, 2021, 02:23:00 PM

Nancy Pelosi’s Husband Makes Bank On Nvidia Trade As Senate Votes On CHIPS Act

Paul Pelosi, husband of House Speaker Nancy Pelosi, reportedly bought US$1 million worth of additional...

Sunday, July 24, 2022, 11:04:00 AM

Tech SPAC Yotta Acquisition Prices US$100 Million IPO

Special purpose acquisition company Yotta Acquisition Corporation (Nasdaq: YOTAU) started trading its securities on the...

Wednesday, April 20, 2022, 02:23:00 PM