Nvidia-Backed CoreWeave Readies For Market Debut This Week: What You Need To Know About AI Cloud Firm

Nvidia Corp. (NVDA)-backed CoreWeave announced Thursday that it has launched the roadshow for its proposed initial public offering (IPO) of its Class A stock.

Livingston, New Jersey-based CoreWeave is an artificial intelligence (AI) hyperscaler, that delivers a cloud platform of software powering the next generation of AI. Its technology provides enterprises and leading AI labs with cloud solutions for accelerated computing.

Since 2017, CoreWeave has operated data centers across the U.S. and Europe. 

Earlier this month, the company filed a preliminary prospectus on Form S-1 with the SEC regarding its intention to go public. 

Through the IPO, the company plans to offer 49 million shares, with 47.18 million being offered by the company and the remaining 1.82 million by existing shareholders. 

It expects to price the IPO between $47 and $55 apiece.

CoreWeave intends to offer the underwriters a 30-day option to purchase an additional 7.35 million shares to cover over-allotments. It has filed to list its shares on the Nasdaq under the ticker symbol “CRWV.”

Morgan Stanley, JPMorgan and Goldman Sachs will be joint lead bookrunners for the proposed offering.

CoreWeave expects net proceeds of $2.3 billion from the offering. The company clarified that it will not receive any proceeds from the sale of shares by selling stockholders.

“The principal purposes of this offering are to create a public market for our Class A common stock, increase our visibility in the marketplace, obtain additional capital, and increase our financial flexibility,” CoreWeave said.

Breaking down the cash deployment plan, CoreWeave said it intends to use approximately $1 billion of the net proceeds to repay the entire outstanding amount under its 2024 Term Loan Facility.

The company also said it may use a portion of the net proceeds to acquire or invest in technologies, solutions, or businesses that complement our business. 

CoreWeave reported revenue of $1.9 billion for the financial year ended Dec. 31, 2024, marking a 737% growth. It incurred a net loss of $0.9 billion. The company generated an operating margin of 17% and an adjusted operating income margin of 19% in 2024. At the end of 2024, the remaining performance obligations (RPOs) stood at $15.1 billion. 

As of Dec. 31, it operated 32 data centers and had a contracted power capacity of 1.5 gigawatts (GW) and GPUs of over 250,000 online. 

CoreWeave listed Nvidia, IBM, Meta, Microsoft, Mistral AI and OpenAI among its partners. 

A Bloomberg report said Thursday that the CoreWeave IPO was oversubscribed after early mutual fund support and is poised to raise as much as $2.7 billion. The deal is expected to be priced on Thursday, and trading is likely to begin on Friday.

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