CoreWeave Seeks IPO

CoreWeave, a rising star in the AI industry, filed for an initial public offering (IPO) on March 3.

The company collaborates closely with bitcoin (BTC) miner Core Scientific (CORZ), having signed a multi-billion dollar agreement for Core Scientific to construct extensive infrastructure to support CoreWeave’s AI services. CoreWeave is currently Core Scientific’s largest client.

Impact of the IPO on Core Scientific

Wolfie Zhao, head of research at TheMinerMag, speculated on the potential effects of CoreWeave’s IPO on Core Scientific. He noted, “CoreWeave’s IPO likely will have a correlating impact on Core Scientific. If CoreWeave’s public debut is successful and it sustains strong revenue growth in the coming years, it will reinforce Core Scientific’s position as a reliable infrastructure provider, ensuring a stable revenue stream from hosting CoreWeave’s GPUs.”

However, Zhao cautioned that if the AI market slows down, Core Scientific could face similar challenges due to its increasing reliance on the AI ecosystem.

CoreWeave’s New Partnership

Analysts from Canaccord Genuity stated that the IPO may not be as significant as CoreWeave’s new $12 billion collaboration with OpenAI. This strategic partnership will help CoreWeave diversify away from Microsoft, its current major revenue source, which accounts for about two-thirds of its income. This diversification is expected to be beneficial for Core Scientific as CoreWeave’s primary customer.

According to analysts at H.C. Wainwright, the ongoing relationship between CoreWeave and Core Scientific is unlikely to suffer from CoreWeave’s quest for diversification. They dismissed rumors suggesting CoreWeave might seek to end its contract with Core Scientific. They emphasized the longstanding partnership and the continuous agreements for Core Scientific to provide more infrastructure to support CoreWeave.

Core Scientific’s Reaction

Core Scientific’s executive team expressed enthusiasm about the pending IPO. A spokesperson mentioned, “We’re proud to be part of their journey toward becoming a public company and look forward to supporting their continued success. Nothing is more rewarding than seeing our customers grow, and we’re excited to continue scaling alongside them as they reach new milestones.”