Nvidia-backed cloud computing company CoreWeave has decided to reduce the size of its IPO and lower its share price.
Last week, CoreWeave announced plans to offer 49 million shares at a price range of $47 to $55 per share to raise around $2.7bn through IPO. This would have given the company a valuation of up to $32bn on a fully diluted basis.
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But now, the US-based AI cloud hosting firm plans to sell 37.5 million shares, marking a 23.5% reduction from its original plan.
The shares are now priced at $40 each, significantly below the previously indicated range.
Of the total shares on offer, CoreWeave will issue 36.6 million, while existing shareholders will sell 910,000 shares.
Nvidia is set to anchor the IPO with a $250m order at the adjusted price, a source familiar with the matter told Reuters.
The offering is now expected to raise approximately $1.5bn, valuing CoreWeave at around $23bn on a fully diluted basis, the news publication added.
The company’s roadshow, which commenced last week, has reportedly faced a weaker-than-expected response.
Market volatility and investor concerns over CoreWeave’s long-term growth prospects, financial risks, and capital-intensive business model is said to have contributed to cautious sentiment, according to media reports.
One major concern among investors is said to be CoreWeave’s dependence on Microsoft, whose evolving AI datacentre strategy could affect long-term demand for graphics processing units (GPUs).
CoreWeave has deployed more than 250,000 of the semiconductor giant Nvidia’s GPUs as of the end of 2024.
Earlier in March 2025, CoreWeave signed a $11.9bn deal to provide AI infrastructure to OpenAI.
