CoreWeave's IPO Will Expose AI's Dirty Secrets

I'VE OFTEN COMPLAINED that much of the AI-driven stock price bump enjoyed by big tech companies has come despite the absence of any real data on how this new business is truly performing.

- Bloomberg

The hyperscalers — those companies investing billions of dollars in building out artificial intelligence — have given only the vaguest indications of AI revenues, hiding the numbers within broader segments.

Meanwhile, the key pure-play AI companies, like OpenAI, are still private. Insights into their finances dribble out from time to time, whether intentionally or through leaks, never presenting a full picture. As such, it's hard for investors to gauge just how real the AI boom really is. That changed last week when CoreWeave became a publicly traded company in the first significant IPO of the AI era. The company, which started out as a crypto mining operation, sells access to data centers outfitted with Nvidia hardware to those wanting to build AI. CoreWeave's fortunes rest entirely on generative AI being real, lucrative, and sustainable. Gulp.