Reuters: IPOX® Analyst Lukas Muehlbauer on CoreWeave’s downsized IPO
IPOX® Research Analyst Dr. Lukas Muehlbauer was recently interviewed by Reuters regarding CoreWeave's downsized IPO, as the Nvidia-backed cloud computing company reduced both the size and price of its public offering.
"The business model doesn't appear fundamentally flawed, but this suggests investors are recalibrating AI infrastructure valuations," Muehlbauer told Reuters, providing expert insight into what the reduced offering might signal about the broader AI market.
CoreWeave cut its offering by 23.5%, to sell 37.5 million shares at $40 each, well below the initially indicated range of $47-$55. This pricing values the company at approximately $23 billion, down from the potential $32 billion valuation originally sought.
The company's roadshow reportedly received a weaker-than-expected reception as investors expressed concerns about CoreWeave's heavy reliance on Microsoft, capital-intensive business model, and significant debt of about $8 billion.
Despite these challenges, Nvidia anchored the IPO with a $250 million order, and CoreWeave has secured partnerships with major AI players including Sam Altman's OpenAI, with whom it recently signed an $11.9 billion infrastructure deal.
The scaled-back offering is being closely watched as a test of both the U.S. IPO market recovery and investor confidence in AI infrastructure companies.
Read the full article at Reuters:
https://www.reuters.com/technology/coreweave-planning-cut-us-ipo-size-price-below-range-source-says-2025-03-27/
