Coreweave is in the center of the AI ​​Revolution and its IPO Card House

Today Coreweave started trading on the stock exchange and looks like an unfavorable start for the AI ​​sector. The company first hoped to sell shares for $ 47-55 $ 55, but despite the fact that it began to sell for $ 39 Developed by NVIDIA With a mass of $ 250 million in order for $ 40 per share. When you look at the hood, Coreweave is a company that raises many questions, a company that raises many questions than the enthusiastic demand for investors.

Coreweave found something in a sensitive position in recent years. Starting in 2017, the Cryptocurrency received a GPUs to pivote the Mining Industry, when it became just a hot new trend. Coreweave is a radically choice and shovels: This presents GPU to an industry looking hopelessly.

The closest concern is that the industry does not need them today. Coreweave goes to the public as the largest customer, withdrawed to spending in Microsoft, AI infrastructure, to leave their leases Allow the global scale information centers and Openai Find other partners. Chips were suddenly in great demand after starting with Chatgpt in 2023, but the supply deficiency seems to be demolished in a way that could be bad for Coreweave. From Wall Street Journal:

The supply deficiency has since then and companies are relatively easy to get the required chips. Leasing for an hour over an hour cost about $ 5.50 in mid-2023; Now $ 1.55, the Executive Director of San Francisco, the Executive Director of a Market for GPUs Evan Conrad said.

To put the risks here in the context, Microsoft accounts for 62% of Coreweave’s revenues in 2024. However, it reduced the $ 12 billion infrastructure option, which should be adopted by Openai.

In addition, NVIDIA, Coreweave is basically backward, only Coreweave, NVIDIA GPU, just returned to return the money to use the money to get accounting 6-7% of NVIDIA’s work. Only two companies do not seem like a cooling, power position in Microsoft and Nvidia-Porary EU.

Even worse, Coreweave drowns under heavy debt burden. Despite the $ 1.9 billion income in 2024, Coreweave, $ 6 billion and the previous year, due to heavy expenses to build a EI infrastructure, $ 1.1 billion. In the past, in the past, the GPU has reduced GPU prices, using the GPU as collateral, GPU prices and more efficient AI models use the eyebrows as they require less resources. At least, Coreweave is expected to increase $ 1.46 billion in the public proposal that will allow you to pay a little debt.

Coreweave can lead to problems in the coming days and weeks to go to the public for other AI companies. They need them, many investors demand income, especially in recent years, several companies went to the public.

Coreweave, if anything, may seem like the first barometer of current market stress for GPUs. NVIDIA CEO Jensen Huang and Industry claims that new “thinking” models are more welded and the AI ​​is more consumer, because the EU can continue to rise for years as it becomes more effective. However, these are elective and shovel enterprises; Of course, they will say that you need more choices and shovels. Openai’s Sam Altman Sent x Yesterday was the “melting” the GPU required to the new image generator of Chatgpt. Whether it is a short-term fad as people Novelty Studio Ghbli Knockoffs madeOr something more durable, it remains to be seen.

In both cases, there is no doubt about Coreweave, especially in the martyr square. Chip prices decreasing and main technological giants Build your own NVIDIA opponents At home? Why Coreweave will be a $ 32 billion company, because it is expected to be evaluated on the first day of trade? What will happen if the Agi comes to pass the boom? The company has more than the reliability of any other critical AI company, and any other critical AI company has exceeded the reliability of the reliability of an experiment, which has passed in the last two years.

“None of these companies do not make any profit from the EU’s profit and Openai, no really need to do these services,” he said. “If there were, Microsoft could not just remove 2GW from the future calculation capacity.”

There will be three founders of Coreweave or good. They went out $ 500 million From the holdings between 2023 and 2024.