CoreWeave Cuts Its IPO Valuation by Half Just One Day Before Hitting the Market

CoreWeave is in close partnership with bitcoin miner Core Scientific (CORZ), which was expected to profit from the IPO

The size of the initial public offering of CoreWeave, a company providing infrastructure for artificial intelligence, has been slashed just a day ahead of the launch, Semafor reported.

The company is now expected to raise $1.5 billion through the IPO, down from a previous estimate of $3 billion, according to a report by Bloomberg, which cites two people familiar with the matter. The valuation has also been reduced to $23 billion, Semafor said.

Earlier reports stated that CoreWeave would be offering 100 million shares of Class A common stock at a price range of $28 to $30 per share.

The company is closely linked to bitcoin miner Core Scientific (NASDAQ:), which is set to benefit from the IPO if the results are positive and enable the company to sustain strong revenue growth over the next few years.

In early U.S. trading on Friday, CORZ stock rose fractionally, continuing a recent decline that has seen the stock decrease sharply over the past month and for 2024 as a whole.

Meanwhile, AI-related tokens NEAR, ICP and RENDER added modestly to earlier losses.

Earlier this year, CoreWeave reported $1.9 billion in revenue in 2024 as it saw surging demand for its AI services. Some analysts believe that CoreWeave’s new $12 billion deal with AI giant OpenAI could have bigger implications for the company than its IPO plan.

The move by CoreWeave to reduce the IPO size also comes as tech stocks have lagged other market sectors since the beginning of the year. This downturn can be attributed, in part, to the on-and-off tariffs imposed by U.S. President Donald Trump and worries about the spending of AI companies.

Following the IPO, CoreWeave's stock will be traded on the Nasdaq under the ticker symbol "CW." The company's shares are expected to begin trading on Friday, making it the first AI company to be listed on the stock market.

A representative from CoreWeave could not be reached for comment at the time of publication.