From Yahoo Finance: 2025-03-27 22:53:00

CoreWeave Inc. raised $1.5 billion in its IPO, selling 37.5 million shares at $40 each, down from the initial plan of 49 million shares. Nvidia is anchoring the sale with a $250 million order. The company was originally looking to raise $4 billion before stock market volatility.

Led by CEO Michael Intrator, CoreWeave started as a crypto mining firm in 2017 and is now a leading player in the neocloud category. The company’s revenue is heavily dependent on Microsoft Corp. and has raised concerns about its debt levels and sustainability. Analysts question the company’s growth path.

Microsoft’s cancellation of new data center projects due to an oversupply in AI training clusters could impact companies like CoreWeave. Alibaba’s chairman has warned of a potential bubble in data center construction. CoreWeave also faces internal control weaknesses over financial reporting, as disclosed in its filings.

CoreWeave’s investors include Nvidia, Magnetar Capital, Coatue Management, and others. None of the founders planned to sell stock in the IPO. The IPO is set to begin trading on the Nasdaq under the ticker CRWV. Stock market volatility impacted the downsized deal.

Read more: CoreWeave Raises $1.5 Billion in Downsized IPO Below Price Target