Coreweave CEO describes AI circular agreements as ‘collaborative efforts’

Coreweave’s Eventful Year: Challenges and Growth in the AI Cloud Sector

Coreweave has experienced a turbulent year marked by significant milestones and notable setbacks. The company made headlines in March with its highly anticipated public offering, which, despite the buzz, failed to meet lofty expectations.

Further complications arose in October when Coreweave’s intended acquisition of its business partner, Core Scientific, collapsed. The deal unraveled due to resistance from Core Scientific’s shareholders.

Despite these hurdles, Coreweave has actively expanded its portfolio by acquiring several companies, and its stock performance has fluctuated considerably. The firm has faced both criticism and praise for its influential position in the rapidly growing AI data center industry.

Defending a New Approach

During a conversation at Fortune’s AI Brainstorm summit in San Francisco, Michael Intrator, Coreweave’s co-founder and CEO, addressed skepticism about the company’s trajectory. He emphasized that Coreweave is pioneering a novel business model for cloud computing. Their valuable collection of Nvidia GPUs is even used as collateral to secure funding for operations. Intrator suggested that forging a new path inevitably comes with obstacles.

“People often have a narrow perspective,” Intrator remarked when asked about the company’s volatile stock price. He acknowledged the fluctuations, pointing out that the IPO occurred just before the introduction of President Trump’s tariffs, a period of economic uncertainty.

He added, “We entered the market during one of the toughest periods, right around Liberation Day, and despite significant challenges, we managed to pull off a successful IPO. I’m extremely proud of what our team has achieved.”

Stock Performance and Financial Strategy

Although Coreweave’s stock launched during a sluggish economy in March, its price journey has been dramatic. Starting at $40, it soared above $150 within eight months before settling near $90. Some observers have likened its unpredictable swings to those of meme stocks.

The company’s substantial debt load has contributed to market uncertainty. Shortly after announcing a new debt issuance to fund data center expansion, Coreweave’s stock dropped by approximately 8%.

Disrupting the Industry

Intrator views Coreweave as a disruptive force, employing unconventional strategies that may take time for the market to accept. “Introducing a new way of doing business in a traditionally static environment requires patience from stakeholders,” he explained.

From Crypto Mining to AI Infrastructure

Originally launched as a cryptocurrency mining operation, Coreweave quickly transformed into a key provider of AI infrastructure for leading technology companies. The company supplies GPUs to AI developers and has forged significant partnerships with industry giants such as Microsoft, OpenAI, Nvidia, and Meta.

Industry Circularity and Expansion Efforts

The topic of “circularity” in the AI sector—where a handful of dominant companies invest in each other—was also discussed. This practice has drawn criticism and raised concerns about the industry’s long-term financial health. Given that Nvidia is both a supplier and investor in Coreweave, Intrator dismissed these worries, stating, “Companies are responding to dramatic shifts in supply and demand by collaborating.”

Since going public, Coreweave has continued to broaden its reach. After acquiring Weights and Balances, a platform for AI developers, in March, the company went on to purchase OpenPipe, which specializes in deploying AI agents using reinforcement learning. October saw further acquisitions, including Marimo, an open-source notebook creator, and Monolith, another AI-focused firm. Coreweave has also expanded its partnership with OpenAI and announced intentions to enter the federal sector, aiming to provide cloud infrastructure solutions to U.S. government agencies and the defense industry.