Hello, tech enthusiasts! Let’s dive into some exciting news from the tech world.

CoreWeave is gearing up for a potential IPO that could be worth up to $4 billion. Backed by Nvidia, this company has a robust AI-specific cloud service operating through 32 data centers, hosting over 250,000 Nvidia GPUs.

The initial S-1 registration for their IPO is filled with fascinating revelations. CoreWeave aims to raise at least $3.5 billion, hoping to hit a $32 billion valuation. Just a few months back, in November, they closed a $650 million secondary share sale valuing the firm at $23 billion.

Interestingly, the three co-founders have already pocketed an impressive $488 million from their shares before the IPO even occurs. CEO Michael Intrator, along with his partners Brian Venturo and Brannin McBee, have been strategically selling off their Class A shares.

Despite owning less than 3% of Class A shares, the founders still hold significant control over the company through Class B shares, retaining about 80% of voting power.

Here’s a twist: the founders’ backgrounds aren’t in technology, but rather in finance, having previously worked in hedge funds, specifically in the oil industry. To enhance their tech capabilities, they brought on Chen Goldberg from Google Cloud.

Nvidia’s stake of over 6% in CoreWeave marks a significant partnership. This collaboration not only presents a powerful alliance but also contributes to CoreWeave’s explosive revenue growth, achieving $1.9 billion in 2024.

However, all is not smooth sailing. CoreWeave reported $863 million in losses last year and carries $7.9 billion in debt. Yet, the founders have positioned this debt as a part of their sophisticated financial strategy, utilizing GPU assets as collateral.

As excitement builds around the IPO, the tech world watches closely. CoreWeave, with its innovative approach and strong backing in AI, is set to make waves, and the anticipation is palpable.