CoreWeave, an Nvidia-Backed AI Developer, Files for IPO
CoreWeave, an American-based cloud-computing startup backed by Nvidia (NVDA), announced this week its intends to list on U.S. markets, a filing with the Securities and Exchange Commission (SEC) revealed.
This sets up what may be the largest listing in years, which could boost Wall Street’s lagging initial public offering (IPO) market. New York Stock Exchange (NYSE) President Lynn Martin, speaking Tuesday at the Bloomberg Invest conference, said the listing market could raise about $50 billion this year. That would return IPOs to pre-COVID times. Investors are also expecting the buy-now-pay-later firm Klarna to list this year.
Reuters reported back in November that the company has a target of raising $3 billion from the listing, but that it could be as high as $4 billion. The New Jersey-based company will sell shares in the offering, alongside shares from several established shareholders.
CoreWeave aims for a valuation of around $35 billion, which would make it the highest-valued IPO since Rivian listed in New York. It has several prominent customers, including Microsoft (MSFT), IBM (IBM) and Meta (META).
A secondary share sale back in November raised $650 million and valued the company at $23 billion. However, the listing revealed that revenue surged recently, rising to $1.92 billion last year. That compares with $229 million the year prior.
CoreWeave announced Tuesday it had acquired artificial intelligence (AI) developer Weights & Biases in a bid to bolster its cloud service platform with the AI-focused portfolio used by companies including Meta and openly OpenAI.
Terms of the deal have not been released. Its valuation is thought to be around $1.7 billion, according to The Information, citing unnamed sources.
Thomas Westwater, a tastylive financial writer and analyst, has eight years of markets and trading experience. #@fxwestwater
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