NEW YORK, NY – CoreWeave, a cloud computing company backed by Nvidia, made its debut on the stock market with an initial public offering priced at $40 per share on Thursday, falling below its expected range. The company raised $1.5 billion through the sale of 37.5 million shares.
Founded in 2017, CoreWeave initially focused on cryptocurrency mining before transitioning to providing cloud infrastructure services. With Microsoft accounting for 62% of its $1.9 billion revenue last year, CoreWeave heavily relies on partnerships with key tech giants for its business operations.
High debt levels pose a significant risk factor for CoreWeave, as the company reported owing $8 billion in debt as of the end of last year. Additionally, its dependence on Nvidia chips and Microsoft sales further highlight the challenges the company may face in the competitive cloud computing market.
Despite facing stiff competition from industry giants like Amazon’s AWS, Google Cloud, IBM, Microsoft Azure, and Oracle, CoreWeave remains confident in its ability to innovate and adapt to evolving market demands. The company acknowledges the dynamic nature of the AI cloud infrastructure sector but is committed to staying ahead through constant improvements in technology and customer service.
In 2024, CoreWeave reported a net loss of $863 million on revenue of $1.9 billion, mainly due to strategic investments in its business. The company’s IPO performance, with shares priced below the expected range, reflects the cautious optimism among investors considering CoreWeave’s financial standing and market positioning. Trading under the ticker symbol “CRWV” on the Nasdaq, CoreWeave is expected to navigate the challenges ahead while capitalizing on opportunities for growth and expansion in the cloud computing industry.