CoreWeave's unique standing in the AI industry has attracted significant investments, including a major investment from Cisco Systems that values the company at $23B and a $650M credit facility led by JPMorgan, Goldman Sachs, and Morgan Stanley. The company's strong balance sheet, unique relationship with Nvidia, and long-term contracts with credit-grade tenants like Microsoft have boosted its credibility among data center developers and investors. CoreWeave is expected to capitalize on this credibility through an IPO, which is anticipated to be one of the largest offerings next year.
Key takeaways:
- AI cloud startup CoreWeave is rapidly expanding its data center footprint and has secured hundreds of millions of dollars in funding, anticipating a 300% growth in annual revenue to around $8B next year.
- CoreWeave has recently signed a major deal with Microsoft, which plans to spend $10B by the end of the decade to use CoreWeave’s data centers for AI training, making Microsoft its largest customer.
- The company has raised more than $12.7B over the past 18 months, with significant investments from Cisco Systems and chipmaker Nvidia, and plans to open 28 data centers globally by the end of the year.
- CoreWeave is planning an initial public offering (IPO) filing in December, with Morgan Stanley, Goldman Sachs Group Inc., and JPMorgan Chase & Co. expected to lead the planned IPO.