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CoreWeave IPO Underwhelms, Closing at $40 After Downsized Offering

The Nvidia-backed AI infrastructure company raised $1.5 billion, falling short of its initial targets, as concerns grow over debt, revenue concentration, and market volatility.

Mike Intrator, Chief Executive Officer and founder of CoreWeave, (C) rings the opening bell surrounded by Executive Leadership and family during the company's Initial Public Offering (IPO) at the Nasdaq headquarters on March 28, 2025 in New York City.
CoreWeave

Overview

  • CoreWeave's IPO raised $1.5 billion at a $23 billion valuation, significantly below its initial $35 billion target.
  • Shares debuted at $39, below the $40 IPO price, fluctuated throughout the day, and closed flat at $40.
  • The company plans to allocate $1 billion of the proceeds to reduce its $8 billion debt burden.
  • CoreWeave's 2024 revenue surged 737% to $1.9 billion, but it posted a net loss of $863 million, raising profitability concerns.
  • Investor skepticism centers on CoreWeave's heavy reliance on Nvidia GPUs and Microsoft, which accounted for 62% of its 2024 revenue.