CoreWeave Inc. experienced volatile trading in its market debut following a downsized $1.5 billion initial public offering (IPO). The cloud-computing provider’s stock opened at $39 per share, 2.5% below the IPO price of $40, before rising to $41.89. CoreWeave sold 37.5 million shares at $40 each, significantly lower than the initial plan of 49 million shares at $47 to $55 each, which could have raised up to $2.7 billion.

Nvidia Corp., an existing investor, anchored the share sale with a $250 million order. Half of the shares sold in the IPO went to the three largest investors, with the top 15 investors taking 90% of the shares. CEO Michael Intrator highlighted that without Nvidia’s support, the IPO would not have closed.

CoreWeave, started in 2017 as a crypto mining firm, has pivoted to AI-related computing using Nvidia’s chips. Over 75% of its 2024 revenue comes from its two largest customers, one being Microsoft Corp. Analysts have raised concerns about the sustainability of CoreWeave’s growth due to its high concentration of revenue, elevated debt, and spending levels.

The IPO was led by Morgan Stanley, JPMorgan Chase & Co., and Goldman Sachs Group Inc. CoreWeave’s shares are trading on the Nasdaq under the symbol CRWV.