CoreWeave targets valuation of more than $35bn in 2025 US IPO

New York — Artificial intelligence cloud platform CoreWeave is aiming for a valuation of more than $35bn in its US initial public offering next year, people familiar with the matter said on Friday.

Roseland, New Jersey-based CoreWeave is likely to target raising over $3bn from its share sale, which could launch during the second quarter of 2025, the sources said, cautioning that the company’s plans are subject to market conditions and could change.

The discussions come at a time when investor interest in generative AI is rocketing. The AI boom, which has powered chipmakers such as Nvidia and other big tech firms, has turbocharged global demand for infrastructure such as data centres and high-powered servers.

It was reported in September that data centre operator Switch was exploring an IPO that could value the company at about $40bn, including debt.

Funding for private AI and cloud start-ups in the US, Europe and Israel is rising after three years of decline, and is estimated to touch $79.2bn by the end of this year, venture capital firm Accel said in October.

CoreWeave offers access to data centres and high-powered chips for AI workloads, primarily supplied by Nvidia, one of the company’s main backers. It competes against larger cloud computing service providers such as tech giant Microsoft’s Azure and Amazon’s AWS.

CoreWeave declined to comment.

A broader wave of high-profile names is gearing up for potential listings next year, as the IPO market shows early signs of thawing after several bouts of market volatility shut down capital markets for much of the last two years.

CoreWeave recently completed a $650m secondary share sale, which valued it at $23bn. Investors led by Jane Street, Magnetar, Fidelity Management and Macquarie Capital participated in the secondary stock deal.

Bloomberg reported in November that CoreWeave had tapped investment banks for its IPO preparations.

Reuters