CoreWeave, an AI Startup Supported by Nvidia, Values IPO at $2.7 Billion; OpenAI to Receive $350 Million in Equity
CoreWeave’s Upcoming IPO: Key Details
Overview of CoreWeave’s Initial Public Offering
CoreWeave, a cloud AI startup, is preparing for its initial public offering (IPO) with the goal of raising up to $2.7 billion. This potential offering would give the company an estimated market value of around $26 billion. Notably, major players like Microsoft and OpenAI have significant stakes in this venture.
Offering Details
According to CoreWeave’s filing with the U.S. Securities and Exchange Commission (SEC), the company is pricing its shares between $47 and $55 each. The expected net proceeds from selling shares of Class A common stock are projected to be approximately $2.3 billion, assuming a midpoint price of $51. If underwriters opt for their over-allotment option, this figure could increase to about $2.7 billion. The company plans to offer a total of 48 million shares, anticipating trading to commence on the Nasdaq exchange under the ticker symbol ‘CRWV’.
Leadership and Ownership Structure
Michael Intrator, the CEO and co-founder of CoreWeave, is set to retain about 37% of voting power after the IPO. This includes approximately 2% of Class A shares and nearly half of Class B shares. Notably, none of the CoreWeave founders intend to sell their stock during the IPO.
Revenue Sources and Client Relationships
In 2024, a substantial 77% of CoreWeave’s revenue originated from just two customers, including Microsoft, which accounted for 62% of total sales. In response to growing demand, CoreWeave signed a Master Services Agreement with Microsoft in February 2023, allowing the tech giant access to its AI infrastructure and platform services. CoreWeave’s filing stated that Microsoft will constitute less than 50% of its anticipated future revenue, alongside up to $11.55 billion from the recently initiated partnership with OpenAI.
Major Contracts and Partnerships
CoreWeave has solidified significant agreements prior to its IPO. Among these, it has partnered with OpenAI to provide AI infrastructure, a deal valued at up to $11.9 billion. Additionally, OpenAI is set to receive $350 million in CoreWeave stock, reinforcing their collaborative relationship.
Financial Growth and Employee Landscape
CoreWeave has seen remarkable financial growth, with approximately $1.9 billion in revenue reported in 2024, a drastic increase of 737% compared to 2023. However, the company faced a net loss of $863 million the same year. By May 2024, CoreWeave had expanded its workforce to approximately 550 employees and operated 32 data centers.
Technology and Infrastructure Development
Founded in 2017, CoreWeave specializes in offering a powerful cloud platform equipped with high-performance software and infrastructure tailored for AI applications. The company primarily utilizes GPUs from Nvidia, a crucial facet of its service offerings. CoreWeave has attracted investment from reputable firms such as Cisco, JPMorgan Asset Management, Fidelity, and Pure Storage.
Innovation in AI Infrastructure
During the recent Nvidia GTC 2025 event, CEO Michael Intrator highlighted CoreWeave’s advancements in AI infrastructure, particularly the rollout of new compute instances with Nvidia’s latest RTX PRO 6000 GPUs. Notable for being early adopters of Nvidia GPUs for data centers, CoreWeave has successfully pioneered numerous innovations in the AI sector.
Expansion Plans
Recently, CoreWeave took a significant step in its global expansion by establishing its inaugural data center in Norway, in collaboration with Bulk Infrastructure Group. This venture marks the beginning of its European growth strategy, with plans to invest $2.2 billion in establishing more data centers in countries such as Sweden, Norway, and Spain by the end of 2025. Intrator described this development as a critical part of their commitment to enhancing AI infrastructure worldwide.
OpenAI Collaboration
CoreWeave’s partnership with OpenAI underscores its pivotal role in the AI transformation. According to OpenAI CEO Sam Altman, CoreWeave’s computational capabilities have played an essential role in the development of several renowned AI models. Altman praised CoreWeave for its innovative approach to hardware and data center construction, emphasizing its ability to deliver results rapidly.
In summary, CoreWeave is poised for a significant IPO backed by strong partnerships and a clear growth trajectory, creating an ambitious roadmap for the future of AI infrastructure.
