Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

CoreWeave co-founder explains how a closet of crypto-mining GPUs led to a $1.5B IPO | TechCrunch

Mar 29, 2025 - techcrunch.com
CoreWeave's IPO launched with a lukewarm reception, pricing at $40 per share, below the expected range, and raising $1.5 billion with a $14 billion market cap. Despite the underwhelming start, it marked the largest AI-related IPO to date. The company, founded by former hedge fund managers, transitioned from being the largest Ethereum miner to a key player in AI training infrastructure. Their journey began with GPU mining and evolved through partnerships with open-source groups like EleutherAI, leading to significant customers like Stability AI and OpenAI.

CoreWeave's growth was fueled by strategic partnerships and investments, including a $100 million investment from Magnetar and a $12 billion deal with OpenAI. The company now operates 32 data centers with 250,000 GPUs, including Nvidia's Blackwell chips. Despite its $7.6 billion debt, CoreWeave has structured customer deals to cover these costs. The founders acknowledge their success as a mix of strategic decisions and fortunate opportunities, transforming from crypto miners to leaders in AI infrastructure.

Key takeaways:

  • CoreWeave's IPO raised $1.5 billion with a $14 billion market cap, making it the largest AI-related listing to date, despite a lukewarm market reception.
  • The company started as a crypto mining venture using consumer GPUs, eventually becoming the largest Ethereum miner for a period.
  • CoreWeave transitioned to AI training by partnering with EleutherAI, which led to significant business growth and partnerships with companies like Stability AI and OpenAI.
  • Despite having $7.6 billion in debt, CoreWeave has structured customer deals to cover GPU-related expenses, and it has grown to operate 32 data centers with 250,000 GPUs.
View Full Article

Comments (0)

Be the first to comment!