CoreWeave Scales Back IPO Amid Investor Caution

In a recent report from Reuters, CoreWeave reduced the size of its U.S. initial public offering and priced shares below the expected range, signaling weaker investor appetite for AI infrastructure IPOs. The Nvidia-backed company is now selling 37.5 million shares at $40 each, a 23.5% reduction from its original plan. This pricing is well below the earlier indicated range of $47 to $55. Of these shares, CoreWeave is offering 36.6 million, while existing shareholders are selling 910,000.

Nvidia has committed to anchoring the IPO with a $250 million order. The sale is expected to raise approximately $1.5 billion, valuing CoreWeave at around $23 billion on a fully diluted basis. However, the company’s roadshow received a weaker-than-expected response from investors concerned about its long-term growth prospects, financial risks, and capital-intensive business model.

A key concern is CoreWeave’s reliance on Microsoft, whose evolving AI ...