Nvidia stock could get a boost from a new cloud service providers such as CoreWeave, which get access to AI chips, CoreWeave plans 2025 IPO.
CoreWeave, the cloud computing services startup backed by Nvidia (NVDA) and private equity firms, could finally be the generative artificial intelligence startup that goes public with a bang. The company recently turned to top Wall Street bankers as it prepares for a 2025 initial public offering. Another big issue for investors is how much Nvidia stock has to gain from a wave of CoreWeave-like startups that also includes Lambda Labs, Crusoe and others.
Check Also : CoreWeave Company Profile and Funding, Net Worth, Wikipedia, Earning, Careers, IPO, Stock, Valuation, Crypto and more
New rivals to cloud giant Amazon.com (AMZN), CoreWeave and the other cloud startups rent Nvidia-chip equipped computer servers to artificial intelligence app developers. When Nvidia invested $100 million in CoreWeave in early 2023, the fundraising round valued the startup at $2 billion. In CoreWeave's recent funding round, its valuation boomed to $23 billion.
CoreWeave IPO Planned In 2025
"The potential IPO of CoreWeave stands out like a lake in a desert," said Deutsche Bank analyst David Folkerts-Landau in a report. "The (IPO) pipeline for U.S. share sales has largely dried up over the past two years, with technology deals few and far between. An IPO next year for the cloud-computing provider, whose recent fundraise reportedly valued it at $23 billion, could spell the end for the drought."
AI chipmaker Cerebras, an Nvidia rival, shelved its IPO in 2024, he noted.
Check Also : CoreWeave Company Profile and Funding, Net Worth, Wikipedia, Earning, Careers, IPO, Stock, Valuation, Crypto and more
