Nvidia-Backed CoreWeave Eyes $4 Billion IPO: Is This AI's Next Big Test?

CoreWeave, a cloud computing firm backed by Nvidia Corp (NASDAQ:NVDA), is racing toward an IPO.

It aims to raise $4 billion at a valuation north of $35 billion.

CoreWeave could file for a U.S. listing within a week, reported Bloomberg, setting the stage for one of the year's most anticipated debuts.

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From Crypto To AI Powerhouse

Originally a cryptocurrency mining outfit, CoreWeave pivoted to AI in 2019 and hasn't looked back.

The company was an early and aggressive buyer of Nvidia Corp's (NASDAQ:NVDA) GPUs, amassing a staggering 300,000 chips — now the backbone of AI model training worldwide.

This strategic bet has paid off, with revenues skyrocketing from $25 million in 2022 to $2 billion in 2024.

Wall Street's Newest Darling?

Morgan Stanley, Goldman Sachs, and JPMorgan are steering the IPO, according to the Financial Times.

Investor appetite is already being tested. While the company has serious backers — Nvidia, Coatue, Jane Street, and Fidelity — it also carries a hefty $11 billion debt load, much of it backed by its prized Nvidia chips.

A Shifting AI Landscape

CoreWeave's biggest customer, Microsoft Corp (NASDAQ:MSFT), has committed over $10 billion through 2030, but there's a catch – Microsoft's AI infrastructure strategy is evolving.

With reports of data center contracts being unwound, investors are questioning whether CoreWeave can sustain its meteoric rise.

The Stakes Are High

As AI demand surges, CoreWeave's IPO will be a litmus test for the "neocloud" market.

If it lands smoothly, it could validate the booming GPU-rental business. If not, it may signal turbulence ahead in AI's high-stakes gold rush.

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