CoreWeave, the Nvidia-backed AI infrastructure firm, saw its shares close flat on Friday after opening nearly 3% below the IPO offer price. With a fully diluted valuation of $23 billion, the IPO has raised questions about investor appetite for AI infrastructure amid ongoing tariff turmoil and competitive pressures.
CoreWeave’s stock opened at $39, just below the $40 IPO price, and ended the day flat—following a challenging trading session. The lackluster performance comes against the backdrop of broader market volatility, with the tech-heavy Nasdaq down 2.7% on the same day.
The subdued debut could dampen expectations for a broader recovery in IPO sentiment, especially as markets continue to navigate tariff-related uncertainty. Investors are increasingly cautious, particularly as the long-term sustainability of AI infrastructure companies comes under scrutiny.
During the roadshow, risk-averse investors expressed concerns over CoreWeave’s financial risks and the capital-intensive nature of building AI infrastructure. Kamran Ansari, managing partner at Kapital Ventures, remarked,
"I don’t know how receptive the market’s going to be,"
highlighting skepticism about the company’s meteoric growth and its ability to maintain momentum in a volatile environment.
Compounding these worries is the competitive pressure from lower-cost alternatives, such as China’s AI startup DeepSeek, which promises similar capabilities with fewer chips. This intensifies the debate over whether CoreWeave’s aggressive expansion can be sustained in the face of mounting competition.
Nvidia played a significant role in CoreWeave’s debut, contributing a $250-million order as part of the IPO that raised $1.5 billion. Despite the need to downsize its offering on Thursday, CoreWeave’s listing remains the largest AI-related IPO by funds raised, according to Dealogic data dating back to 1995.
CEO Mike Intrator emphasized the long-term promise of AI infrastructure, noting,
"The infrastructure that you need to build and deliver artificial intelligence is one of the true super cycles that exist."
His statement underscores the company’s ambition even as market sentiment remains mixed.
The flat closing and valuation metrics have sparked worries among investors already cautious due to the turbulent market environment. Comparables in the AI space—such as Oracle and Microsoft—have experienced significant declines this year, shedding 13% and 7% respectively, further challenging optimistic forecasts for AI-related stocks.
As CoreWeave continues to navigate these challenges, its future will depend on demonstrating sustainable growth amid competitive pressures and a shifting macroeconomic backdrop. Investors will be closely watching whether the firm can translate its technological promise into enduring profitability.
For a closer look at market trends impacting AI infrastructure, insights are available through the Market Biggest Gainers endpoint, which provides real-time data on industry performance and investor sentiment.
