CoreWeave, an Nvidia-backed AI infrastructure firm and a significant Microsoft customer, debuted on Nasdaq with its shares closing flat after opening nearly 3% below their offer price. The company was valued at $23 billion on a fully diluted basis. This lackluster performance in its IPO could temper sentiment towards AI infrastructure investments, especially amid concerns over Big Tech's spending and competition from lower-cost options such as China's AI startup DeepSeek.
CoreWeave's CEO stated that its contracts with Microsoft have not changed and no commitments have been canceled or withdrawn by the cloud giant. The company also signed a five-year contract worth $11.9 billion with OpenAI in the lead-up to the IPO, which is expected to materially decrease its single client concentration. While CoreWeave's revenue grew more than eight-fold last year, it also carries approximately $8 billion in debt and $2.6 billion in operating lease liabilities, which could be a concern for investors.
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