Prime Highlights:
The company filed for an IPO, seeking to go public under the ticker “CRWV” on Nasdaq.
In 2024, CoreWeave’s revenue surged 737% year-over-year to $1.92 billion.
Microsoft accounted for 62% of CoreWeave’s revenue in 2024, with the company generating 77% of its revenue from just two customers.
Key Background:
CoreWeave, a cloud provider specializing in Nvidia-based processors, has filed for an initial public offering (IPO), signaling its entry into the public market. In its filing, the company disclosed remarkable financial growth, with 2024 revenue surging by 737% year-over-year to reach $1.92 billion. Despite this significant increase, CoreWeave posted a net loss of $863.4 million. The company’s revenue heavily depends on a few key clients, with Microsoft contributing 62% of the total.
CoreWeave, which operates 32 data centers housing over 250,000 Nvidia GPUs, started as Atlantic Crypto in 2017, initially focusing on Ethereum mining. After the decline in cryptocurrency prices, the company shifted its focus to AI infrastructure and graphics rendering. The company’s transition was fueled by a demand for scalable GPU resources, which legacy cloud providers failed to adequately address.
A significant portion of CoreWeave’s recent success can be attributed to the rapid adoption of AI technologies, especially after the release of OpenAI’s ChatGPT in 2022. Microsoft, which has been working with CoreWeave since 2023 to meet OpenAI’s demands, is its largest customer. Despite being a major client, Microsoft also competes with CoreWeave in the cloud space, alongside other tech giants like Amazon, Google, and Oracle.
CoreWeave’s IPO filing reveals a debt nearing $8 billion and highlights potential risks, including geopolitical tensions that could affect its supply chain. The company is seeking to raise capital during a period of slow tech IPO activity, with Morgan Stanley, JPMorgan Chase, and Goldman Sachs serving as lead underwriters. CoreWeave will list its shares under the Nasdaq ticker “CRWV.”
