CoreWeave, IPO
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CoreWeave's Nasdaq debut saw shares fall below their IPO price, raising market concerns.
Inc |
The stock, trading under the ticker CRWV, opened at $39 a share on Friday, touched a high of $41.94, and ran flat at market close.
Reuters |
Frustration is also mounting over when Big Tech's massive investments in AI will yield returns, leading to concerns CoreWeave may have missed the ideal window to list its shares.
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CoreWeave in recent years found itself in something of an enviable position. Starting out in 2017, it bought GPUs to supply to the cryptocurrency mining industry, only to pivot to AI when that became the hot new trend. CoreWeave is fundamentally a picks and shovels business: It supplies GPUs to an industry that has desperately sought them.
The cloud computing company’s cofounder Brannin McBee spoke to Forbes about the “important milestone” as shares started trading Friday.
CoreWeave's debut has been eagerly awaited by investors as a sign of the strength of the AI trade as well as the appetite for new IPOs.
The start-up, which provides the processing power to help develop A.I. systems, faces questions about its debt and the overall economy.
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Originally founded as a crypto mining company, CoreWeave pivoted to renting out its Nvidia graphic processing units to companies desperate to train AI. The New Jersey-based company is the first tech listing this year,
CoreWeave received the most proceeds from a U.S. technology IPO since automation software maker UiPath went public in 2021.
A cloud computing provider specializing in GPU-accelerated AI infrastructure, CoreWeave saw tepid demand for its highly publicized IPO underscoring the notion that timing is critical in the IPO market. But the broader message has implications for AI giants like Microsoft and NVIDIA.
Hyper-rational’ CEO secured important deals with Blackstone and Microsoft to create a cloud computing giant ahead of IPO