Aiming to profit on growing interest in artificial intelligence technology, CoreWeave, an artificial intelligence infrastructure provider supported by chipmaker Nvidia (NVDA, Financials), intends to price its forthcoming initial public offering at $47 and $55 per share.
The company reported $1.9 billion based on IPO filings, a 737% increase over the year before, suggesting strong revenue growth in 2024. Despite this significant revenue increase, CoreWeave noted a huge net loss of $863 million in the same period, underlining the enormous cost of research and the competitiveness of the artificial intelligence infrastructure business.
Microsoft (MSFT, Financials) became the primary single customer of CoreWeave when over 62% of its revenue in 2024—a notable rise from 35% the year before—is obtained. This great reliance on one large client may provide some risk issues for investors concerned about income concentration.
Currently running 32 data centers with more than 250,000 Nvidia GPUs, mostly for artificial intelligence applications, CoreWeave emphasizes the capacity and knowledge of its infrastructure. To supply infrastructure services aimed to support advanced artificial intelligence projects, the company has just inked a five-year, $11.9 billion deal with OpenAI. This partnership places CoreWeave as a major infrastructure partner in a market increasingly under the influence of internet behemoths.
Beyond Nvidia and Microsoft, CoreWeave indicates great market acceptance among industry leaders by servicing a number of well-known AI clients including IBM (IBM, Financials), Meta Platforms (META, Financials), Cohere, and Mistral AI.
Targeting a late March or April 2025 formal market debut, CoreWeave is probably going to start promoting shortly for its IPO. The listing specifies the company's shares as using the ticker symbol CRWV.
Not yet disclosed are details like probable value and the share count offered.
