CoreWeave's Nasdaq Debut Raises $1.5 Billion

CoreWeave's shares debuted on the Nasdaq at $39, slightly below its IPO pricing of $40, raising $1.5 billion in the largest U.S. tech offering since 2021. Initially intended to be priced between $47 to $55, the offering was scaled back due to market volatility and investor caution amid macroeconomic concerns. CoreWeave, heavily reliant on Microsoft for 62% of its revenue, faces competitive pressures from tech giants like Amazon and Google. Despite rapid revenue growth, the company reported significant losses and carries substantial debt, raising questions about its financial sustainability. The IPO serves as a critical indicator of the AI sector's market potential and the broader tech IPO market that has been sluggish since late 2021. CoreWeave's strategic partnerships with companies like Nvidia and its position in the AI infrastructure market make it a key player to watch, despite the challenges it faces.