CoreWeave, a prominent AI cloud provider, has filed to go public on the Nasdaq under the ticker symbol "CRWV." Founded in 2017 in New Jersey as Atlantic Crypto, CoreWeave initially specialized in infrastructure for mining Ethereum cryptocurrency. However, with the decline in digital currency prices, it pivoted to focus on graphics rendering and artificial intelligence, marking a significant shift in its business strategy. The company now provides cloud-based Nvidia graphics processing units to major players like Meta and Microsoft.
In 2024, CoreWeave recorded a staggering 737% increase in revenue year over year, amounting to $1.92 billion. Despite this impressive growth, the company faced a net loss of $863.4 million. A significant portion of CoreWeave's revenue, precisely 62%, was sourced from Microsoft. This partnership began in 2023 when CoreWeave started collaborating with Microsoft to meet the demands of OpenAI.
"So therefore we had to catch up. So we said, Hey, we're not going to in fact worry about too much inefficiency." – Microsoft CEO Satya Nadella
Hedge fund Magnetar plays a crucial role in CoreWeave's governance, controlling 7% of its voting power. Meanwhile, Nvidia holds a smaller stake with 1% voting power. As CoreWeave steps into the public market, it faces significant competition from tech giants such as Microsoft, Amazon, Google, Oracle, Crusoe, and Lambda—each vying for dominance in the cloud services sector.
CoreWeave's evolution from a cryptocurrency-focused enterprise to a leader in AI and graphics processing underscores its adaptability and strategic foresight. The decision to acquire additional GPUs during the downturn in digital currency prices helped position the company as a key player in meeting the growing demand for advanced computing capabilities.