CoreWeave, an artificial intelligence (AI) cloud-computing startup backed by Nvidia (NVDA), filed for an initial public offering (IPO) that will see it join the Nasdaq Exchange under the “CRWV” ticker. This comes after its 2024 revenue rocketed 737% higher to $1.92 billion as demand for its services increased alongside the AI boom. However, its net loss for the year was $863.4 million.
Of note are CoreWeave’s customers, one of which is Microsoft (MSFT). The tech giant turned to CoreWeave in 2023 when it needed additional cloud servers to meet the demand for OpenAI’s ChatGPT. The startup was able to provide this as it went all-in on AI cloud computing after shifting its data centers away from Ethereum (ETH) mining. Microsoft is the company’s largest customer, providing 62% of its 2024 revenue.
CoreWeave operates 32 data centers with more than 250,000 graphics processing units (GPUs). The company still has $15.1 billion in contracts to fulfill and notes 96% of its revenue comes from committed contracts.
Who Are CoreWeave’s Investors?
Executives are the biggest investors in CoreWeave ahead of the IPO with a combined voting power of 82.58%. Of those executives, CEO Michael Intrator holds the largest stake in the company at 38.31%. Hedge fund Magnetar is another large investor in CoreWeave with a 7.23% stake. Several other entities control smaller stakes in CoreWeave, including Nvidia with its 1.21% of voting power.
When Will CoreWeave Go Public?
The finer details of the CoreWeave IPO haven’t been revealed yet. That includes when the company intends to launch its IPO, but a 2025 launch is likely. Investors also don’t know how many shares will be included in the IPO or what they will be priced at. One estimate claims the company will seek a more than $35 billion valuation in its offering.
Investors waiting for the CoreWeave IPO might consider a stake in Nvidia. It provides the GPUs that power the company’s AI data centers. NVDA has a consensus rating of Strong Buy based on 38 Buy and three Hold ratings. It also sports a $178.66 price target, representing a potential 56.64% upside.
