AI cloud platform CoreWeave is targeting a valuation exceeding $35bn in its US initial public offering (IPO), Reuters reported citing sources.

The IPO is anticipated to launch in the second quarter of next year. CoreWeave’s plans, however, are subject to market conditions and may change, the sources noted.

Based in Roseland, New Jersey, CoreWeave is expected to aim to raise over $3bn from its share sale.

The company provides access to data centres and high-powered chips for AI workloads, primarily supplied by Nvidia.

CoreWeave competes with larger cloud computing service providers such as Microsoft’s Azure and Amazon’s AWS, the news publication said.

CoreWeave recently secured a $650m secondary share sale, which valued the company at $23bn, a significant increase from $7bn about a year ago.

Investors in this transaction were led by Jane Street, Magnetar, Fidelity Management, and Macquarie Capital.

Additional investors included Cisco Investments, Pure Storage, and funds managed by BlackRock, Coatue, and Neuberger Berman, among others.

This transaction involved existing stakeholders selling shares to outside investors.

Earlier this month, Bloomberg reported that CoreWeave had engaged investment banks for its IPO preparations.

In May, the AI cloud platform was valued at $19bn, following a $1.1bn Series C investment led by Coatue.

A month later, CoreWeave announced investing $2.2bn to expand its operations by opening three new data centres in continental Europe by the end of next year.

This expansion is part of the company’s “long-term strategy” to offer complex computer solutions, including NVIDIA’s Blackwell platform and Quantum-2 InfiniBand networking, to support technology companies and AI innovators.