CoreWeave, a cloud services provider backed by Nvidia, has announced plans for an initial public offering (IPO) in the United States, targeting a valuation of up to $26 billion. The company aims to sell 49 million shares at a price range of $47 to $55 per share, potentially raising $2.7 billion.

AI Boom Drives Demand for CoreWeave’s Services

The rapid growth of artificial intelligence (AI) has fueled demand for cloud computing and high-performance data centers. CoreWeave specializes in providing AI-focused cloud infrastructure, leveraging Nvidia GPUs to power machine learning and AI workloads.

A major boost to CoreWeave’s growth came earlier this month when it secured a five-year, $11.9 billion contract with OpenAI, the company behind ChatGPT. As part of the deal, OpenAI will receive $350 million worth of CoreWeave shares through a private placement at the time of the IPO.

Strong Revenue Growth but Rising Losses

CoreWeave has experienced massive revenue growth, increasing from $228.9 million in 2023 to $1.92 billion in 2024. However, with its rapid expansion, the company also reported a net loss of $863.4 million last year.

The company’s business model relies on scaling AI-driven cloud services, but investors will be watching closely to see if it can achieve profitability in the coming years.

A Key Test for AI IPOs

CoreWeave’s IPO is expected to be a crucial test for AI-focused companies in the stock market. The U.S. IPO market has been slow to recover after a three-year downturn, with economic uncertainty and high interest rates impacting investor confidence.

Despite these challenges, AI infrastructure companies continue to attract strong interest as AI adoption accelerates across industries. If CoreWeave’s IPO is successful, it could pave the way for other AI-driven startups to go public.

CoreWeave’s Nasdaq Listing

CoreWeave plans to list on the Nasdaq stock exchange under the ticker symbol "CRWV", marking a significant milestone in its journey as a leading provider of AI cloud infrastructure.

With the ongoing AI revolution, CoreWeave's IPO will be closely monitored by investors, analysts, and tech giants looking to capitalize on the next wave of AI innovation.