Nvidia-backed startup CoreWeave’s revenue has grown more than eightfold in 2024, according to the cloud provider’s IPO papers. This initial public offering (IPO) filing lays the framework for what might be one of the largest stock market flotations in recent years.
According to an amended IPO filing, the company is seeking a valuation between $27.4 billion and $32 billion — despite the fact that it has nearly $7.5 billion in debt due by the end of next year. A previous Reuters report suggested that CoreWeave is seeking a valuation of more than $35 billion in its New York IPO.
CoreWeave, founded in 2017, gives access to data centers and high-performance CPUs for AI workloads, which are mostly supplied by Nvidia. It competes with cloud services like Microsoft’s Azure and Amazon’s AWS. The cloud firm’s clients include hedge fund Jane Street, as well as IT giants like Meta, IBM, and Microsoft. A
READ: AI may cause massive layoffs on Wall Street in the near future (January 10, 2025)
The corporation was valued at $23 billion in November 2024, following a secondary share sale of $650 million. Its revenue jumped to $1.92 billion in 2024, up from $228.9 million the year before. Its net loss increased to $863.4 million during the same time, up from $593.7 million in 2023.
Matt Kennedy, a senior strategist at Renaissance Capital said: “CoreWeave should be one of the headline IPOs of 2025. We’ve been waiting for a tech company like this to break the ice.”
CoreWeave has raised more than $14.5 billion in debt and equity across 12 financing rounds. In May 2024, CoreWeave raised over $7 billion in one of the largest private debt financing rounds in history, led by asset managers Blackstone and Magnetar.
This comes at a time of a great rise in the demand for digital infrastructure such as data centers, due to the AI boom. The launch of DeepSeek’s low cost AI rattled investors and raised fears of a pullback in AI spending. However, Nvidia’s quarterly earnings report alleviated much of those fears.
READ: Biden administration to intensify restrictions on China’s access to AI chips (January 14, 2025)
“A lot of other AI companies are sitting on the sidelines, waiting for another IPO to crack open the window a bit more. IPO markets have had a shaky start to the year, but a successful listing from CoreWeave could really help get the ball rolling,” Kennedy said. CoreWeave’s data center footprint grew to 32 in 2024, compared with 10 in 2023. It now runs a total of more than 250,000 graphics processing units (GPUs).