CoreWeave Set to Test Investor Appetite as First Prominent AI Startup to IPO
In 2016, three New York commodities traders, Michael Intrator, Brian Venturo, and Brannin McBee, found themselves captivated by the potential of cryptocurrencies. Using Bitcoin for casual bets in pool games and fantasy football, they were drawn to the volatile price swings. This led them to the idea of creating their own digital currencies through a process known as mining, which necessitates significant computing power.
They began by acquiring computing components, starting with two Nvidia graphics processing units (GPUs) purchased from Amazon. These powerful chips enabled them to run complex calculations and analyze vast amounts of data. Their initial investment expanded, eventually filling both a garage and a warehouse with the necessary hardware.
In 2017, the trio established Atlantic Crypto to mine cryptocurrencies. However, when crypto prices plummeted two years later, they pivoted, renaming the business CoreWeave. They then raised capital to acquire as many GPUs as possible from struggling crypto miners, betting that the chips would become crucial to the development of artificial intelligence, whose creation also relies on substantial computing power.
Their foresight proved accurate. When OpenAI launched the ChatGPT chatbot in 2022, igniting an AI frenzy, the demand for computing power skyrocketed, positioning CoreWeave favorably.
“We assumed this was going to happen,” said Michael Intrator, CoreWeave’s chief executive, in a 2023 interview with The New York Times. “We were well positioned for this transition.”
Now, CoreWeave is poised to discover if it can replicate its success on Wall Street. This month, the tech company submitted filings for a public listing, an initial public offering (IPO) of stock. If the IPO proceeds according to plan, it will be the first major AI startup to hit the stock market. The offering will occur during a market correction, which could potentially impact its timeline or success.
