A company specializing in artificial intelligence, CoreWeave, has successfully secured $1.5 billion for its initial public offering (IPO), which places the valuation of the firm at approximately $23 billion. This information was confirmed recently, clarifying earlier news regarding a reduction in the size of its IPO.
The cloud services provider sold 37.5 million shares at a price of $40 each, having initially aimed to offer 49 million shares priced between $47 and $55. However, the company faced challenges due to an underperforming stock market.
Originally, the firm targeted raising $4 billion at a $35 billion valuation, reporting $1.9 billion in revenue for the previous year but encountering a significant net loss of nearly $900 million.
Nvidia, a major player in the AI sector and an investor in CoreWeave, is supporting the IPO with a substantial order of $250 million, as disclosed by sources familiar with the situation.
CoreWeave has a strong connection to CoreScientific, a bitcoin mining company that entered into a multi-billion-dollar agreement with the New Jersey-based firm to enhance its artificial intelligence capabilities.
Nvidia’s stock has experienced a decline of 12% since the start of the year, reflective of a broader downturn among companies focused on AI.
UPDATE (March 28, 2025, 00:20 UTC): Includes further information.