March 28 - CoreWeave has scaled back the size of its U.S. initial public offering, pricing shares below the projected range.

The Nvidia (NASDAQ:NVDA)-backed cloud services firm now intends to sell 37.5 million shares at $40 each, reducing its offering by 23.5% from initial plans. The revised pricing falls below the earlier target range of $47 to $55 per share. The company will issue 36.6 million shares, while existing stakeholders will offload 910,000 shares.

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Nvidia is set to anchor the IPO with a $250 million purchase at the final offering price. The adjusted sale is expected to generate around $1.5 billion, valuing CoreWeave at approximately $23 billion on a fully diluted basis.

Investor reception has been weaker than anticipated, as concerns grow over CoreWeave's reliance on Microsoft (NASDAQ:MSFT), capital-intensive operations, and financial sustainability. The company, which leases its 32 data centers, has an $8 billion debt load and $2.6 billion in operating lease liabilities.

Morgan Stanley (NYSE:MS), J.P. Morgan (NYSE:JPM), and Goldman Sachs (NYSE:GS) are leading the IPO.