This Nvidia-Backed Company Is Seeking a $35 Billion Valuation in One of the Most Eagerly Anticipated IPOs of 2025: 3 Things You Should Know

This shows its capital investments are productive and generate significant revenue opportunities. Coreweave was able to scale significantly in 2024 due to increased customer demand. More than 95% of the new revenue was from existing customers. The company also estimates a long “estimated economic life of our infrastructure” that, coupled with multiyear contracts, has created attractive unit economics.

In its registration statement, Coreweave said that it has initially gone after a small core group of customers, including Nvidia and Microsoft. This strategy has paid off so far. Microsoft made up 35% of total revenue in 2023 and then 62% of revenue in 2024. There are pros and cons to this approach. The pros are that one of the most influential tech companies in the world that will likely be a crucial player in AI in the future sees immense value in Coreweave’s offerings. The downside, of course, is that if Microsoft decides to end the relationship, the company would find itself in a bind.

However, having such a large relationship with Microsoft is likely to attract other large tech companies wading into the world of AI and gives the company a certain amount of credibility when it pursues new customers. In fact, Reuters recently reported that Coreweave has inked a five-year, $11.9 billion deal with OpenAI, the company behind ChatGPT. As part of the deal, OpenAI will also acquire a stake in the company.

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*Stock Advisor returns as of March 14, 2025

Bram Berkowitz has positions in Ethereum. The Motley Fool has positions in and recommends Ethereum, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

This Nvidia-Backed Company Is Seeking a $35 Billion Valuation in One of the Most Eagerly Anticipated IPOs of 2025: 3 Things You Should Know was originally published by The Motley Fool