CoreWeave, a cloud services provider specializing in AI workloads and backed by Nvidia, is preparing for a U.S. initial public offering (IPO) aiming to raise up to $2.7 billion. The company plans to offer 49 million shares priced between $47 and $55 each, potentially valuing CoreWeave at approximately $32 billion on a fully diluted basis.
This IPO is anticipated to play a significant role in revitalizing the U.S. IPO market, serving as a barometer for investor interest in companies leveraging artificial intelligence technologies. In a strategic move preceding the IPO, CoreWeave secured an $11.9 billion infrastructure contract with OpenAI, the creator of ChatGPT. Additionally, CoreWeave will issue shares worth $350 million to OpenAI through a private placement during the IPO.
Nvidia currently holds a 5.96% stake in CoreWeave’s Class A shares, which is expected to decrease to 5.05% post-IPO. The success of CoreWeave’s public debut could bolster confidence in the IPO market and encourage other companies in the AI sector to consider public offerings.
