CoreWeave, a provider of AI cloud computing infrastructure, formerly a crypto mining company, has recently filed for an IPO with the US SEC.
The company is currently valued at $35 billion led to this valuation by Morgan Stanley, Goldman Sachs, and JPMorgan as the lead underwriters.
This is the most significant change CoreWeave has made after pivoting from being a crypto mining company for the past six years. With the rise in AI demand, the company has managed to place themselves as one of the fastest AI technology providers.
Staggering Growth But Heavy Losses
CoreWeave looks to be rapidly expanding—but also showing deep financial losses. The company pulled in $1.9 billion in revenue for 2024, an incredible 737% increase compared to the prior year. However, the costs of aggressive investments into development and borrowing $8 billion dollars at high interest led to a net loss of $863.4 million.
Its latest quarterly report sounds equally good. Revenue hit $747.4 million, with a 76% gross margin and $112.7 million in operating income. It’s worth noting they have $15.1 billion worth of unpaid contracts sticking around and this hangs a promise about future revenue as well.
Skepticism Over Long-Term Stability
Despite strong growth Coreweave faces concern among experts as to whether that momentum will last. The company’s business relies heavily on high current demand for AI infrastructure and very limited supply of GPUs.
This is just a big pile of quickly depreciating GPUs and servers in a few buildings, said Jeffrey Emanuel, CEO of Pastel Network on X.
“If the market turns to a GPU oversupply scenario, people are going to look through to the underlying spot earnings and it’s going to be really ugly,” he said
If successful, CoreWeave’s IPO could be one of 2025’s biggest tech listings, further solidifying theAI industry all the stronger on the open markets. Still, despite hefty debt and the rise of a very competitive ecosystem Core Weave has hurdles to jump to show sustainability for the long term.
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