CoreWeave Inc., a leading provider of cloud-computing services for artificial intelligence, plans to raise up to $2.7 billion in its initial public offering (IPO). The company is marketing shares at $47 to $55 each and selling approximately 47 million shares, with existing shareholders offering the remaining 1.8 million.
The IPO’s valuation could reach $32 billion on a fully diluted basis, according to Bloomberg estimates. Despite this, CoreWeave’s founders are not planning to sell any stock in the IPO. The company’s revenue increased significantly last year, reaching $1.9 billion, but it also incurred a net loss of $863 million.
CoreWeave has secured two significant deals ahead of its listing, including a pact with OpenAI Inc. worth up to $11.9 billion. The startup will receive $350 million in shares as part of the deal. Additionally, CoreWeave is set to acquire AI developer platform Weights & Biases for about 1 million shares.
CoreWeave’s investors include Nvidia Corp., Magnetar Capital, and Cisco Systems Inc., among others. However, the company has disclosed material weaknesses in its internal controls over financial reporting, citing insufficient IT controls and a lack of qualified personnel.
The IPO is being led by Morgan Stanley, JPMorgan, Goldman Sachs, and 11 other advisers, with CoreWeave’s shares expected to trade on the Nasdaq under the symbol CRWV.
Source: https://finance.yahoo.com/news/ai-cloud-firm-coreweave-seeking-222633690.html