CoreWeave seeks $32 billion valuation in pivotal AI infrastructure IPO test

CoreWeave’s upcoming IPO represents a significant test for both the U.S. public offering market and investor confidence in AI infrastructure providers. The Nvidia-backed cloud services company is seeking a valuation of up to $32 billion on a fully diluted basis, positioning itself as a specialized player in the booming generative AI sector that has driven record market gains over the past two years.

The big picture: CoreWeave and selling shareholders aim to raise up to $2.7 billion by offering 49 million shares priced between $47 and $55 each in what could be one of the year’s most closely watched tech offerings.

Key partnerships: The company has secured major industry backing and strategic relationships that bolster its market positioning.

• CoreWeave signed an $11.9 billion infrastructure contract with OpenAI, which will also receive $350 million in shares through a private placement.
• Nvidia currently holds 5.96% of CoreWeave’s Class A shares, providing both financial and strategic validation.

Corporate evolution: The company has transformed dramatically since its founding just eight years ago.

• Established in 2017, CoreWeave originally operated as a cryptocurrency mining operation.
• The company pivoted away from crypto following Ethereum’s 2022 upgrade, refocusing entirely on AI infrastructure.

Market implications: The IPO will serve as a critical indicator of whether investors believe specialized AI data center providers can successfully compete against established cloud computing giants.

• CoreWeave plans to trade on the Nasdaq under the ticker symbol “CRWV.”
• Morgan Stanley, J.P. Morgan, and Goldman Sachs are leading the underwriting effort.

Why this matters: The success or failure of CoreWeave’s public debut could significantly influence both the dormant IPO market’s revival prospects and investor sentiment toward new entrants in the AI infrastructure space.