Nvidia-backed CoreWeave targets 26 billion-dollar valuation in AI IPO test
Technology
Nvidia-backed CoreWeave targets 26 billion-dollar valuation in AI IPO test
(Reuters) - CoreWeave said on Thursday it was targeting a valuation of up to $26 billion in its US initial public offering, as the Nvidia-backed startup bets on strong demand for generative artificial intelligence.
The listing is seen as crucial to the revival of a largely moribund U.S. IPO market, as well as a gauge of investor appetite for new entrants in a sector that has propelled stock markets to record gains over the past two years.
The cloud services provider and some of its investors are looking to sell 49 million shares priced between $47 and $55 each to raise as much as $2.7 billion in the offering. Reuters was the first to report the terms on Wednesday.
Meanwhile, ahead of the IPO, CoreWeave had tied up with some of the biggest AI heavyweights, including Sam Altman's OpenAI. Last week, the company signed an $11.9 billion infrastructure contract with OpenAI.
CoreWeave, which provides access to data centers and high-powered chips for AI workloads, mainly supplied by Nvidia, will issue shares worth $350 million to the ChatGPT maker through a private placement in the IPO.
