Key takeout
Nvidia (NVDA)-backed cloud computing company CoreWeave will be able to publish what is expected to become one of the biggest IPOs in recent years next week.
According to IPO research firm Renaissance Capital, the company is expected to aim for $4 billion in funding raised through the IPO. This will be one of the biggest public applications in recent years.
CoreWeave makes money by providing clients with access to the data centers used to develop artificial intelligence models. The company’s data center is equipped with Nvidia’s highly coveted chips and holds about 5% stake in CoreWeave.
CoreWeave’s biggest client is Microsoft (MSFT), which accounts for 62% of last year’s $1.9 billion revenue, according to the prospectus. Reliance on Microsoft has been a source of concern that it will become an investor, especially after this week’s Financial Times report stated that Microsoft has “departed from some of its commitments” with the company.
Coreweave disputed the report, saying, “There have been no cancellations of the contract and we are not walking away from our commitments. The opposition claims are false and misleading.”
CoreWeave reported a net loss of $863 million in 2024 against $1.9 billion in revenue.
