• Nvidia commits to a $250 million order in CoreWeave's IPO at $40 per share, signaling strong backing for the AI cloud provider.
  • CoreWeave revises IPO terms downward, now targeting $1.5 billion with 37.5 million shares at $40 each.
  • The company's 2024 revenue surged 737% to $1.9 billion, though it posted an $863 million net loss.

Nvidia Doubles Down on CoreWeave

Nvidia is placing a $250 million bet on CoreWeave's upcoming IPO, agreeing to purchase shares at $40 apiece according to people familiar with the matter. The anchor order comes as the AI infrastructure provider scales back its offering size by nearly 25%, now aiming to raise approximately $1.5 billion.

CoreWeave's revised filing shows the company will offer 37.5 million shares, down from an initially planned 49 million. The $40 price point sits below the original $47-$55 range, reflecting what sources describe as "adjusted market expectations" for high-growth tech listings. Nvidia's participation provides a vote of confidence as the GPU maker deepens ties with one of its largest cloud partners.

Growth and Losses in Equal Measure

The IPO prospectus reveals CoreWeave's explosive 737% revenue growth to $1.9 billion in 2024, alongside mounting losses that reached $863 million. The company has deployed over 250,000 Nvidia GPUs to power AI workloads, recently securing an $11.9 billion, five-year contract with OpenAI.

"This is a capital-intensive business scaling at hyperspeed," said one banker close to the deal who asked not to be named. "The question isn't about current profitability - it's whether the infrastructure can maintain relevance as AI models evolve."

The AI Infrastructure Race

CoreWeave's offering arrives amid fierce competition in cloud-based AI services. The company differentiates itself through specialized Nvidia GPU clusters optimized for generative AI workloads. However, rapid advancements in AI hardware have prompted some rivals to shorten depreciation schedules for existing infrastructure.

Nvidia's participation may help counterbalance investor concerns. The chipmaker's own data center revenue grew 94% year-over-year in its latest quarter, demonstrating continued demand for AI acceleration hardware. CoreWeave representatives declined to comment on specific investor allocations when reached Wednesday morning.

Correction: An earlier version misstated CoreWeave's 2024 revenue growth percentage. The correct figure is 737%.