CoreWeave Reduces IPO Valuation to $23 Billion Before Market Launch
CoreWeave plans to reduce its initial public offering just one day before launch, according to reports.
- Originally expected to raise $3 billion at a $30 billion valuation
- New target set at $1.5 billion with a valuation lowered to $23 billion
- Partnership with bitcoin miner Core Scientific (CORZ), which stands to benefit from the IPO
- CORZ shares have seen recent minor gains but are down significantly over the past month
- AI-related tokens NEAR, ICP, RENDER have experienced further losses
- CoreWeave reported $1.9 billion in revenue for 2024 driven by AI service demand
- A $12 billion deal with OpenAI may have more significant implications than the IPO
- The tech sector has underperformed compared to other markets in 2023
- CoreWeave is set to debut on the Nasdaq as the first AI company listed