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This Week in Startups

Coreweave IPO, AVRide & Digg is Back! | E2093

Mar 5, 2025
CoreWeave is making headlines with its $35 billion IPO after skyrocketing revenues, but heavy dependency on two major clients raises questions about its sustainability. Meanwhile, AVRide is partnering with Uber to roll out autonomous robotaxis in Dallas, signaling a leap in self-driving technology. Not to be missed, Digg is being revitalized by its founders with AI moderation, aiming to recapture the community spirit of social news. The conversation delves into the future of social networks, the role of AI in online communities, and the complexities of investment strategies in tech.
01:08:49

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Quick takeaways

  • CoreWeave's explosive revenue growth of nearly $230 million in 2023 stems primarily from the rising demand for GPU cloud services driven by AI advancements.
  • The company's decision to pursue a $35 billion IPO is largely motivated by the need to raise funds to address an impending billion-dollar debt due in 2024.

Deep dives

CoreWeave's Impressive Growth

CoreWeave has shown remarkable revenue growth, skyrocketing from under $16 million in 2022 to nearly $230 million in 2023, and surpassing $1.9 billion in the following year. This phenomenal increase can be attributed to the booming demand for GPU cloud services, largely spurred by advancements in artificial intelligence technologies like ChatGPT. CoreWeave's early investments into GPU infrastructure positioned them advantageously during a period of increasing market need. However, challenges loom ahead as the company struggles with substantial debt and potential client dependencies.

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