Artificial intelligence cloud provider CoreWeave’s initial public offering (IPO) made history on Friday, marking the biggest tech debut since 2021 and the first major IPO in a prolonged drought. The company’s shares closed flat at $40 after selling at $40, but plummeted to $37 by Monday.
CoreWeave raised $1.5 billion from its IPO, making it the largest U.S. offering since automation software maker UiPath’s $1.57 billion debut in 2021. However, the company’s stock fell nearly 10% on its first trading day, raising concerns about investor appetite for tech stocks.
The IPO comes at a challenging time for investors, with inflation and rising interest rates deterring riskier bets. Despite this, CoreWeave joins a growing list of tech-related companies that have recently filed to go public, including Klarna and ticket reseller StubHub.
CoreWeave’s CEO, Michael Intrator, attributed the reduced IPO size to market conditions, saying there were “a lot of headwinds in the macro.” The company rents out Nvidia graphics processing units to major tech firms like Meta, IBM, and Microsoft, generating $1.92 billion in revenue last year.
The company’s most significant customer is Microsoft, which accounted for 62% of its revenue. CoreWeave was originally known as Atlantic Crypto and previously focused on mining the ethereum cryptocurrency before shifting its focus to AI after digital asset prices fell.
Source: https://www.cnbc.com/2025/03/31/coreweave-stock-slumps-in-second-day-of-trading-ipo.html