AI Factory Fortunes: CoreWeave (CRWV)

Welcome to AI Collision 💥,

In today’s collision between AI and our world:

• From crypto to compute (again)
• Big deal, big customer, big risk
• Investing in the industrialisation of intelligence

If that’s enough to get the GPUs cooking, read on…

AI Collision 💥

In the next edition of our AI Factory Fortunes series, we turn to a company that’s rapidly become the central node of AI infrastructure: CoreWeave.

Each week, we’re looking at how behind-the-scenes players drive the AI boom, and CoreWeave, while bigger than others in this series, is still a relatively new name outside tech circles.

Dubbed the “AI Hyperscaler™,” CoreWeave has scored colossal deals to provide compute power to the likes of OpenAI and even attracted Nvidia and Microsoft’s attention.

But how does a former crypto mining outfit became an $65 billion juggernaut fueling the AI revolution.

CoreWeave – The GPU Kingpin Supplying OpenAI (and Everyone Else)

Welcome to the heart of the AI infrastructure boom… CoreWeave (NASDAQ:CRWV) a company once buried in crypto-mining roots now sits at the centre of the compute arms race.

Founded in 2017 as Atlantic Crypto in New Jersey, CoreWeave pivoted from mining to building GPU-heavy data centres.

They were one of the early crypto miners to identify their hardware had far more potential than just mining crypto.

And by 2024, the company was accelerating rapidly into AI infrastructure.

So much so, its 2024 revenues hit US $1.92 billion (versus ~$229 million in 2023) an astonishing 736% increase on the prior year’s revenues.

Things were humming along so nicely that in March 2025 CoreWeave launched its initial public offering (IPO) on the Nasdaq under the ticker CRWV, pricing 37.5 million Class A shares at US $40.00 each. The listing valued the company at approximately US $23 billion on a fully diluted basis.

Nine months later and it’s worth $65 billion and with a stock price now sitting at $133.

CoreWeave’s business is built on leasing out GPU capacity and high-performance compute racks (primarily Nvidia hardware) to AI-model builders and cloud platforms.

Its largest customer by a wide margin in 2024 was Microsoft, which accounted for more than 60% of revenue.

Crucially, in early 2025 CoreWeave secured a five-year contract valued at up to US $11.9 billion with OpenAI, also giving the AI giant a stake in the company via a $350 million private placement.

With capital spending projected at US $21.5 billion in 2025 (up ~53% year-on-year) to keep pace with capacity deployment, the scale of the opportunity with CoreWeave is clear.

In the broader “AI factory” supply chain, CoreWeave is one of the most visible players.

It builds, hosts and operates the giant compute farms that power next-gen AI models. Without operations like this, the raw horsepower behind chatbots, image generators and large-scale models simply isn’t there.

Its public-company status matters because outside of the massive hyperscalers like MIcrosoft, Amazon, Google, CoreWeave gives you direct exposure to this infrastructure layer, the servers and racks of hardware that make AI possible.

Because the AI arms race is entering a new phase of exponentially increasing demand, CoreWeave is now positioned as a major player, which only comes because of the vindication of customers like Microsoft and OpenAI.

CoreWeave allows investors to “buy the factory floor” of AI, not just the hype.

Of course, for all the good stuff, it’s important to understand that when you’ve got such a narrow customer base and rely so heavily on a deal like OpenAI to justify the massive market cap there’s a healthy dose of risk there too.

Concentration can be a killer if OpenAI ends up moving away from CoreWeave. Granted that’s not happening short term, but unless CoreWeave diversifies its customer base, that’s a big chunk-o-change from one major customer.

Also, they have to get it done also. We call that execution risk, and if they can’t get their operations and compute online, reliable and performing at the specs and speed needed for AI models that are seemingly coming every other week from OpenAI, then CoreWeave will fall behind and lose trust.

But you could almost view CoreWeave as a utility company, or what we used to call “Industrials”.

It shows how infrastructure in the AI age is about gigawatts, racks of GPUs, warehouses the size of stadiums and contracts stretching for years.

As the AI factory builds out globally, companies like CoreWeave could become tomorrow’s titans in the compute supply chain.

If you believe artificial intelligence will reshape everything from cloud to autonomous vehicles to enterprise productivity, then a company like CoreWeave may be a way to align with get your foot in with the industrialisation of intelligence.

James Altucher: My Proprietary AI Indicator Just Flashed EXTREMELY BULLISH On This Little-Known Stock

It provides a component that’s CRITICAL to the AI revolution…

It’s growing revenues by more than $400 billion year on year…

And James’ proprietary AI indicator is flashing a screaming BUY for this Apple buyout candidate.

Please be aware: his indicator has been right about 3 out of every 4 trades for James’ followers in the US.

And now it’s saying this company could be about to go through the roof.

Capital at risk

Boomers & Busters 💰

AI and AI-related stocks moving and shaking up the markets this week. (All performance data below over the rolling week).

Boom 📈

• WISeKey International (NASDAQ:WKEY) up 100%
• Teradyne (NASDAQ:TER) up 21%
• Hut 8 (NASDAQ:HUT) up 19%

Bust 📉

• Meta (NASDAQ:META) down 9%
• C3.ai (NYSE:AI) down 5%
• Tesla (NASDAQ:TSLA) down 2%

From the hive mind 🧠

• Rachel from accounts is now a viral rap star… thanks to AI
• Another AI start up, another $10 million seed money, another unicorn on the way?
• $1 billion is a lot of money to invest in a company. But when you’re Nvidia you can take $1 billion punts all day long and do it again tomorrow without blinking.

Artificial Polltelligence 🗳️

Weirdest AI image of the day

ChatGPT’s random quote of the day

Thanks for reading, and don’t forget to leave comments and questions below,

Sam Volkering

Editor-in-Chief

AI Collision