Processing power arms dealer IPO debut! Can AI cloud giant CoreWeave (CRWV.US) become a benchmark for computing power leasing races?

Cloud provider CoreWeave, supported by NVIDIA, revealed in its IPO filing that the company's revenue in 2024 has grown more than 8 times, and the startup will be conducting its first major AI company listing in New York this year. The IPO application lays the foundation for what could potentially be one of the largest IPOs in recent years, as the IPO market has started to become active again after a seasonal lull in February. CoreWeave will be selling proposed stocks in the company alongside some existing shareholders. According to sources, the company aims to raise over $3 billion through the stock offering. Founded in 2017, CoreWeave provides data center and high-performance chips for AI workloads, primarily supplied by NVIDIA. It competes with cloud service providers like Microsoft's Azure and Amazon's AWS. CoreWeave's clients include hedge fund Jane Street, as well as tech giants Meta, IBM, and Microsoft, and its estimated valuation for the New York listing is expected to exceed $35 billion. Last November, the company reached a valuation of $23 billion through a $650 million fundraising round. In 2024, CoreWeave's revenue soared to $1.92 billion, up from $228.9 million in the same period last year. Meanwhile, net losses expanded from $593.7 million in 2023 to $863.4 million. "CoreWeave is expected to be one of the most anticipated IPOs in 2025. We have been waiting for a tech company like this to break through," said Matt Kennedy, senior strategist at Renaissance Capital. CoreWeave has raised over $14.5 billion in debt and equity financing through 12 funding rounds. In May last year, the company raised over $7 billion in what was the largest private debt financing in history, led by asset management companies Blackstone Group and Magnetar. Data center boom continues The explosive growth in the use of AI applications across industries in recent years has driven global demand for digital infrastructure such as data centers. Data centers are the driving force behind the prosperity of AI. Investors were worried earlier this year by China's DeepSeek's low-cost AI models and concerns over AI spending cuts. These concerns were further exacerbated when TD Cowen analysts hinted last month that Microsoft might cancel some data center leases. However, NVIDIA, a leader in AI, showed in its quarterly earnings report last week that the AI boom is far from over, alleviating concerns about a slowdown in tech giants' AI spending. The successful listing of CoreWeave may encourage other AI companies to advance their IPO plans. Strategist Kennedy said, "Many other AI companies are watching and waiting for another IPO to open more windows. The IPO market has had a shaky start this year, but the successful listing of CoreWeave may really help push the IPO process forward." Sources revealed in September last year that data center operator Switch is considering an IPO with an estimated valuation of around $40 billion. NVIDIA's competitor, Cerebras Systems, had considered going public last year but postponed its roadshow due to a US national security review. CoreWeave's data center footprint grew to 32 in 2024, up from 10 in 2023. The company operates over 250,000 GPUs in total. Its major shareholders include investment firms Magnetar and Fidelity. Chip giant NVIDIA holds a 6% stake in CoreWeave. CoreWeave has conducted an initial public offering with 14 banks, and will be listed on the NASDAQ under the symbol "CRWV". Morgan Stanley, JPMorgan, and Goldman Sachs are the lead underwriters for the offering. Proceeds from the IPO will be used for working capital and other purposes, including debt repayment.