CoreWeave's revenue is heavily reliant on Microsoft, which accounts for 62% of its income, and the company also lists Microsoft and IBM as both customers and competitors. Despite its financial challenges, CoreWeave's collection of Nvidia GPUs is considered valuable collateral, and the company may use IPO funds to reduce its debt. The IPO's success is uncertain, but the company's strong revenue growth in the AI sector has generated significant interest. CoreWeave has declined further comment on the IPO.
Key takeaways:
- CoreWeave, backed by Nvidia, plans to raise at least $3.5 billion in its IPO at a $32 billion valuation, following a previous valuation of $23 billion in November 2024.
- The company's three co-founders have sold nearly $488 million worth of shares but retain control through majority ownership of Class B shares, which carry 10 votes per share.
- CoreWeave reported $1.9 billion in revenue for 2024, with Microsoft accounting for 62% of that revenue, but remains unprofitable with $863 million in losses and $7.9 billion in debt.
- The company may use IPO proceeds to reduce its debt, and its financial strategy includes using its valuable GPU collection as collateral for infrastructure-backed lending.