That IPO market comeback may be a little slower than many hoped.

Cloud computing startup CoreWeave is cutting the size of its IPO, per a report from Semafor.

The startup, which gives customers access to data centers and Nvidia chips for artificial intelligence, will look for a valuation closer to $23 billion than the roughly $30 billion it had originally targeted.

CoreWeave will now look to sell 37.5 million shares and price them below the range at $40 apiece — raising about $1.5 billion, per Reuters. It had been originally reported CoreWeave was seeking to sell 49 million shares in the offering priced between $47 and $55 each to raise as much as $2.7 billion.

It also has been reported Nvidia is looking to anchor the IPO with a $250 million order.

CoreWeave filed for its Nasdaq IPO earlier this month. The filing follows a period of sharp growth for the 8-year-old company, which posted revenue of $1.9 billion in 2024 — up an astonishing 737% from the prior year. However, the company is not profitable. Last year, CoreWeave posted an $863 million net loss, up 45% year over year.

What it means

CoreWeave’s IPO has been looked at as a bellwether for the expected thawing of the IPO market, which has been in an extended dry spell.

However, there seems to be growing concern about how quickly AI adoption will happen for many large companies and how much they are willing to allocate to data center spend. There is also worry that with so many data centers being built, supply could outstrip demand and lessen prices.

CoreWeave has raised $1.57 billion in equity funding, along with over $10 billion in debt financing, per Crunchbase data.

Evanston, Illinois-based asset manager and structured credit investor Magnetar Capital is CoreWeave’s largest stakeholder, with 34.5% of its outstanding Class A shares. Other large stakeholders include Fidelity (7.6%) and Nvidia (6%).

CoreWeave plans to trade under the ticker symbol CRWV, with JP Morgan, Morgan Stanley and Goldman Sachs serving as lead underwriters.

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Illustration: Dom Guzman