CoreWeave nets $1.5 billion in below-target IPO, stock to launch Friday on Nasdaq: Bloomberg

AI hyperscaler CoreWeave raised $1.5 billion in a below-target initial public offering, Bloomberg reported Thursday, citing an anonymous source with knowledge of the matter.

The New Jersey-based company sold 37.5 million shares at $40 each, which is a decrease from its previous plan to offer 49 million shares at $47 to $55 per piece, according to Bloomberg. This could have potentially raised $2.69 billion for the company.

CoreWeave previously eyed an even higher target of raising $4 billion at a $35 billion valuation via the IPO. The company's current valuation is estimated at around $23 billion on a fully diluted basis, Bloomberg said.

The company's target was lowered following worsened volatility and overall decline in the stock market, the report said.

Nvidia, a chip maker and an existing investor in CoreWeave, purchased $250 million worth of shares in the IPO, according to the report.

CoreWeave's shares are scheduled to go live on the Nasdaq on Friday under the ticker CRWV.

Founded in 2017, CoreWeave started out as a crypto mining company focused on mining ether but shifted its focus to AI since Ethereum's transition from a proof-of-work to a proof-of-stake network in 2022. 

CoreWeave also shares a 12-year deal with CoreScientific, during which the bitcoin miner's existing sites would be used to accommodate CoreWeave's AI operations.