CoreWeave's IPO Debut Adjusted Amid Investor Concerns

CoreWeave, an AI cloud services provider backed by Nvidia, is set to debut on Nasdaq at a reduced valuation and share price due to weak investor demand. Initially aiming to raise $2.7 billion with shares priced between $47 and $55, CoreWeave will now offer 37.5 million shares at $40 each, raising $1.5 billion and valuing the company at $23 billion. Nvidia, which holds a 6% stake in CoreWeave, is supporting the IPO with a $250 million share purchase. Despite a revenue surge of over 700% to $1.92 billion in 2024, the company remains unprofitable with a net loss of $863.4 million, largely due to reliance on major clients like Microsoft, which accounted for 62% of its revenue. The IPO is a significant indicator of market interest in AI infrastructure stocks, especially given competition from Chinese companies like DeepSeek offering cheaper AI models. The outcome of CoreWeave's offering could influence the broader IPO market, which has been subdued amidst economic concerns and global trade tensions.