CoreWeave, a cloud services provider backed by Nvidia, has adjusted its initial public offering (IPO) plans, according to Reuters on Friday.
The company now intends to sell 37.5 million shares at $40 each, down from the previously planned 49 million shares priced between $47 and $55. This adjustment reduces the potential capital raise from up to $2.7 billion to approximately $1.5 billion, valuing the company at about $23 billion.
READ: Nvidia-backed cloud firm CoreWeave files for $35 billion IPO (March 4, 2025)
This is far lower than CoreWeave’s previous estimation — earlier, it was reported that the company was eyeing for a valuation between $27.4 billion and $32 billion. A previous Reuters report also suggested that the cloud service provider was seeking a valuation of more than $35 billion in its New York IPO.
Investor concerns have reportedly influenced this decision, particularly regarding CoreWeave’s significant debt—reported at around $8 billion—and its lack of profitability to date. The company’s reliance on major clients, such as Microsoft, which accounted for 62% of its $1.9 billion revenue in 2024, also raises questions about its financial stability.
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.
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Despite these challenges, CoreWeave has secured substantial partnerships, including an almost $12 billion infrastructure deal with OpenAI. Furthermore, Nvidia has committed to anchoring the IPO with a $250 million investment. CoreWeave plans to use about $1 billion of the IPO proceeds to pay down debt.
CoreWeave’s revenue surged more than eightfold in 2024, according to the cloud provider’s IPO filing. While the filing sets the stage for a significant stock market debut, it remains to be seen whether it will rank among the largest flotations in recent years.