CoreWeave, a cloud infrastructure company backed by Nvidia (NVDA, Financial), is cutting the size of its upcoming U.S. IPO and lowering its expected valuation, according to a Reuters source.

The company now plans to sell 37.5 million shares at $40 each—well below the earlier price range of $47 to $55. Nvidia is anchoring the offering with a $250 million commitment. At the revised price, CoreWeave is expected to raise around $1.5 billion, valuing the company at roughly $23 billion. That's down from the $32 billion it previously targeted and far below earlier ambitions of a $35 billion valuation and $3 billion raise.

Once seen as a potential spark for the subdued IPO market, CoreWeave's offering has been tempered by investor concerns around profitability, AI infrastructure saturation, and rising competition from players like China's DeepSeek.

Despite signing an $11.9 billion infrastructure deal with OpenAI, the company remains unprofitable, carries roughly $8 billion in debt, and operates entirely on leased data centers. About $1 billion of IPO proceeds will go toward reducing debt, though CoreWeave plans to continue borrowing.

The market has been especially cautious toward unprofitable tech IPOs in recent years, and that sentiment is weighing on CoreWeave's valuation outlook.

CoreWeave is expected to list on the Nasdaq under the ticker “CRWV.” Morgan Stanley, J.P. Morgan, and Goldman Sachs are leading the underwriting.