Coreweave is going through a period of many fluctuations as the company continuously faces major challenges after listing stocks. The expected IPO in March did not achieve the desired results and stock prices fluctuated strongly in the following months. Another obstacle appeared when the acquisition of Core Scientific was stalled due to skepticism from the target company's shareholders.
At Fortune's AI Brainstorm conference in San Francisco, CEO Michael Intrator shared about these fluctuations for the first time. He said Coreweave is developing a new business model in the cloud computing field. The high-value Nvidia GPU system is used as collateral to borrow capital to serve operations. Intrator admits that this path cannot avoid the testing phase.
He said that the unstable economic environment is putting pressure on the market and causing stocks to fluctuate. Concerns about Coreweave's large debt are also a reason for investors to be cautious. When the company announced plans to issue additional debt to expand the data center, the stock price decreased by about 8%.
Another controversial issue is the circular calculation in the AI industry, when some large enterprises invest cross-subsidized in each other. Intrator dismissed the concern and said companies need to cooperate to address the GPU supply-demand imbalance in a rapidly growing market.
Despite many challenges, Coreweave continues to expand its operations. This year, the company has acquired Weights and Balances, OpenPipe, Marimo and Monolith to strengthen its capacity to develop and deploy AI technology.
Coreweave also expands its cloud computing partnership with OpenAI, aiming to penetrate the US federal market, where it expects to provide cloud infrastructure to government agencies and the defense industry.
These developments show that Coreweave is entering a period of strong transformation with many risks and opportunities when pursuing a new business model in the field of AI infrastructure.
