Nvidia-backed CoreWeave slashes IPO size and price amid investor concerns

CoreWeave plans to reduce the size of its U.S. initial public offering (IPO) and price its shares below the initially indicated range, according to a source familiar with the matter. The Nvidia-backed cloud services provider now aims to sell 37.5 million shares at $40 each, which is 23.5% less than originally planned and below the low end of the indicated range. Nvidia will support the IPO with a $250 million order, and the sale is expected to raise about $1.5 billion, valuing CoreWeave at approximately $23 billion on a fully diluted basis. The company has not commented on the matter, and the IPO pricing is anticipated later on Thursday.

The roadshow for CoreWeave's IPO received a weaker-than-expected response due to investor concerns over the company's long-term growth, financial risks, and capital intensity in a volatile market. CoreWeave's heavy reliance on Microsoft and its shifting AI datacenter strategy could impact future demand for GPUs, raising concerns among investors. While the company has strong free cash flow, its high leverage and capital-intensive business model add to the uncertainty, contributing to a cautious investor sentiment.

Key takeaways

CoreWeave plans to reduce the size of its U.S. IPO and price its shares below the indicated range.
Nvidia will anchor the CoreWeave IPO with a $250 million order at the reduced price.
CoreWeave's roadshow received a weaker-than-expected reception due to investor concerns over long-term growth and financial risks.
CoreWeave's reliance on Microsoft and its capital-intensive business model raise sustainability concerns.

Nvidia-backed CoreWeave slashes IPO size and price amid investor concerns

Key takeaways

Discussion (0)