On April 1, 2025, CoreWeave's third day of listing, the increase was more than 40%, and the highest stock price once exceeded $53.
Recently, the US stock market has been disturbed by President Trump's tariff policy. Semiconductor, AI and other related concept stocks have not been doing well. CoreWeave did not seem to be favored by capital on the first day of listing. In just three days, it made investors take a new look.
What does CoreWeave do?
CoreWeave is an AI cloud computing company that mainly provides GPU cloud computing services. Large technology companies such as Microsoft and OpenAI are its customers. According to data released in 2024, CoreWeave operates 13 data centers in the United States and two data centers in the United Kingdom. It has more than 250,000 NVIDIA GPUs distributed in 32 data centers, with a contract power capacity of more than 1.3 gigawatts.
When will Nvidia invest in CoreWeave?
In April 2023, Nvidia invested $100 million in CoreWeave at a valuation of $2 billion. Just two years later, CoreWeave's valuation exceeded $20 billion.
It is impressive that Nvidia has a good eye for enterprises, and it is generous and quick. But is CoreWeave's business sustainable?
What challenges does CoreWeave face?
According to the data released in 2024, CoreWeave's customers are relatively concentrated and rely heavily on a single customer. Microsoft alone contributes more than 60% of CoreWeave's revenue. Once Microsoft's strategy and business are adjusted, the impact on CoreWeave cannot be underestimated.
On the other hand, in the field of artificial intelligence and cloud computing, CoreWeave faces fierce competition from other large technology companies, such as AWS, Google Cloud Platform, Oracle Cloud Infrastructure, etc. These competitors are not only technically strong, but also well-funded, which puts a lot of pressure on CoreWeave.
According to public information, in 2024, CoreWeave achieved revenue of $1.92 billion, but a net loss of $863.4 million. Moreover, CoreWeave is burdened with other debts, which may be hidden dangers for CoreWeave's future development.
CoreWeave is highly dependent on Nvidia's GPU hardware, and Nvidia has a monopoly in the GPU market. CoreWeave is very attractive to customers. When DeepSeek appeared, not to mention CoreWeave, even Nvidia began to be questioned by the market. CoreWeave needs to reconsider its market positioning and growth expectations.
In particular, as a Chinese artificial intelligence startup, DeepSeek's R1 model is comparable to or even surpasses leading models such as OpenAI's ChatGPT-4 in performance. This has intensified competition in the global AI infrastructure market and brought greater market pressure to CoreWeave.
It seems that there is not much time left for CoreWeave, but at least CoreWeave has successfully IPOed.
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