Michael Intrator, Co-founder & CEO, CoreWeave, on Centre Stage during day two of Web Summit 2024 at the MEO Arena in Lisbon, Portugal.
Carlos Rodrigues | Sportsfile | Getty Images
CoreWeave, a startup that’s grown rapidly by selling Nvidia’s artificial intelligence processors, said in a filing on Thursday that it plans to raise up to $2.7 billion in its upcoming IPO.
After filing its initial prospectus earlier this month, CoreWeave updated the document with an expected pricing range of $47 to $55 per share. The company said it plans to sell 49,000 shares in the offering, including some from existing investors.
Based on the number of Class A and Class B shares outstanding after the offering, the deal would value the company at $26.5 billion at the top of the range, though that number could be higher on a fully diluted basis.
Originally known as Atlantic Crypto, the company got its start in 2017 by offering infrastructure for mining the ethereum cryptocurrency. After digital currency prices fell, the company bought up additional graphics processing units (GPUs) and changed its name to CoreWeave, with a focus on AI.
Revenue has soared in recent years thanks to booming demand for Nvidia’s GPUs. In 2024, sales jumped more than 700% to $1.92 billion, with 77% of revenue coming from two customers. Microsoft is by far the biggest client, accounting for 62% of revenue last year.
Microsoft, whose Azure cloud unit has supplied computing power to OpenAI, started working with CoreWeave in 2023 to meet OpenAI demand, following the launch of ChatGPT the prior year.
CoreWeave plans to trade on the Nasdaq under ticker symbol “CRWV.”
The company is largely controlled by its three co-founders. CEO Michael Intrator will control about 37% of the voting power after the offering, the filing said. Chief Data Officer Brannin McBee will control 19%, while Chief Strategy Officer Brian Venturo will have 25%.
At the end of 2024, CoreWeave’s 32 data centers housed over 250,000 Nvidia GPUs, with a majority using the previous-generation Hopper architecture, according to the filing. Nvidia’s Blackwell GPUs were in full production as November. Last year, Elon Musk startup xAI quickly wired up a data center cluster in Tennessee housing 100,000 Nvidia GPUs.
Morgan Stanley is leading the offering, with help from JPMorgan Chase and Goldman Sachs.
CoreWeave will be attempting to enter the public market during a historically slow stretch for tech offerings. Other companies on file include online lender Klarna and digital health startup Hinge Health.
It’s also a particularly volatile moment for the market and tech stocks, as investors fret over President Trump’s tariff policy and massive cost cuts. The Nasdaq is headed for its steepest quarterly drop since 2022.
— CNBC’s Jordan Novet contributed to this report.