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CoreWeave IPO Opens Below Expectations in Uneven Market Debut
CoreWeave, the AI infrastructure startup that rents out Nvidia chips, had a lukewarm start on the Nasdaq stock exchange, closing its first trading session without gains. The company’s highly anticipated public offering failed to meet early hopes, highlighting broader investor caution toward artificial intelligence companies and public listings in general.
The company priced its IPO at $40 per share—below its projected range of $47 to $55—and sold fewer shares than initially planned. That pricing gave CoreWeave a valuation of around $23 billion, down from the expected $32 billion. The stock trades under the ticker CRWV.
Just months ago, CoreWeave was among the most talked-about AI startups, raising funds in May at a $19 billion valuation. Its backers include OpenAI and Fidelity. The company saw explosive growth as demand for Nvidia GPUs surged during the early wave of AI development.
Investor Pushback and Financial Concerns
Despite early hype, investor concerns came into focus during CoreWeave’s IPO roadshow. Many pointed to the company’s high spending and debt.
In 2024, CoreWeave posted $1.9 billion in revenue but also reported a net loss of $863 million, driven by large operational costs. Adding to investor hesitations was the company's heavy dependence on Microsoft, which made up nearly two-thirds of revenue last year.
The company operates data centers filled with Nvidia GPUs, renting them to clients developing AI systems. In 2023, demand for these chips was intense, but availability has since improved, and costs have dropped. GPU rental rates fell from $5.50 an hour in mid-2023 to $1.55 in early 2025, according to Evan Conrad, CEO of San Francisco Compute.
A Tough Year for IPOs
CoreWeave’s offering follows a string of underwhelming IPOs. Venture Global, the biggest IPO of the year so far, cut its share price by over 40%, and shares still fell after launch. SailPoint, a cybersecurity company, also saw its stock fall on opening day. Both are still trading below their IPO prices.
This pattern has raised doubts among companies considering public offerings. Klarna, StubHub, Chime Financial, and Medline Industries are among the firms eyeing 2025 listings. CoreWeave’s performance could influence their timing.
Adding to the challenge is market volatility. Sharp swings in stock indexes have made investors more hesitant to take positions in newly listed companies. With confidence unsettled, IPO activity could stay slow through much of the year.
What CoreWeave Needs to Prove
Now that the company is public, it must demonstrate that it can manage costs and grow without depending too much on a small group of clients. Success will likely depend on diversifying its customer base and proving its long-term profitability.
As AI companies look to mature and reach wider markets, CoreWeave’s IPO outcome serves as a reminder: early hype can fade fast if the financials don’t back it up.
