Run the Numbers CoreWeave IPO: A Future Giant or Just WeWork with GPUs?
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Mar 8, 2025 Dive into the fascinating world of CoreWeave as the discussion unpacks their recent IPO filing. Discover their unique business model riding the wave of GPU demand, as well as the possibility of becoming a competitive giant in the cloud sector. Analyze their financial metrics, including improving net loss margins and the impact of insider investments. Explore contrasting views on their market potential, from bullish optimism to cautious skepticism surrounding their long-term viability. The stakes are high, and the future looks intriguing!
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CoreWeave's Niche
- CoreWeave is a specialized cloud provider focused on AI, unlike general-purpose providers like AWS.
- They rent high-performance GPUs, essential for AI models, to companies like Meta and Microsoft.
Explosive Growth, But Unprofitable
- CoreWeave's revenue grew explosively from $16M in 2022 to $229M in 2023, a 1346% increase.
- They project $1.9B in 2024, a further 737% growth, but remain unprofitable with large net losses.
CoreWeave's Business Model
- CoreWeave primarily generates revenue by selling access to its AI infrastructure, software, and services.
- Their pricing model is based on per GPU per hour for compute and per gigabyte per month for storage.