Overview

• CoreWeave's IPO raised $1.5 billion at a reduced valuation of $23 billion, well below its initial $35 billion target.
• The company's stock fell nearly 10% on its second day of trading, closing below its IPO price of $40 per share.
• CoreWeave relies heavily on Microsoft, which accounted for 62% of its revenue last year, raising concerns about revenue concentration.
• The company faces significant financial strain with $8 billion in debt and annual interest costs estimated at $1 billion.
• CoreWeave's performance highlights investor skepticism about generative AI's scalability and sustainability as a business model.