Coreweave CEO defends AI circular deals as ‘working together’

Coreweave has experienced a rollercoaster year, marked by significant milestones and setbacks. In March, the AI cloud infrastructure provider completed its highly anticipated IPO, which, despite initial expectations, did not meet the hype surrounding it. The company faced additional challenges in October when a proposed acquisition of its business partner, Core Scientific, fell through due to shareholder skepticism. Amidst these challenges, Coreweave has made several acquisitions and witnessed fluctuations in its stock price, drawing both praise and criticism for its role in the rapidly growing AI data center sector. In a recent interview at Fortune’s AI Brainstorm summit in San Francisco, CEO Michael Intrator defended the company's performance, emphasizing that it is pioneering a new business model for cloud computing. He noted that the company’s collection of Nvidia GPUs is so valuable that they leverage it to finance their operations. Intrator acknowledged the volatility of Coreweave’s stock, stating, “I think people are myopic a lot of times,” when discussing its ups and downs. He attributed some of the stock's fluctuations to the challenging economic environment, particularly referencing the timing of their IPO just before President Trump’s tariffs took effect. Despite these headwinds, he expressed pride in Coreweave’s accomplishments. After debuting at $40, Coreweave’s stock price surged to over $150 but currently hovers around $90, prompting some critics to liken it to a meme stock due to its unpredictable nature. Concerns about the company’s significant debt level have also contributed to this uncertainty, especially following a recent announcement to issue more debt for data center expansion, which caused an 8 percent drop in stock value. Intrator views Coreweave as a disruptor in the industry, suggesting that introducing a new business model can take time for stakeholders to adapt. Originally starting as a crypto-miner, Coreweave has transitioned into a crucial provider of AI infrastructure, partnering with major tech companies such as Microsoft, OpenAI, Nvidia, and Meta. The conversation also touched on the concept of ‘circularity’ in the AI industry, where a select group of powerful companies invest in each other, raising concerns about economic stability. Intrator dismissed these worries, stating, “Companies are trying to address a violent change in supply and demand,” and emphasizing the importance of collaboration. Since going public, Coreweave has actively pursued growth opportunities, including the acquisition of Weights and Balances, an AI development platform, and OpenPipe, a startup focused on AI agent deployment. Additionally, in October, the company announced plans to acquire Marimo, creators of an open-source notebook, and Monolith, another player in the AI space. Coreweave also revealed an expansion of its cloud partnership with OpenAI and aims to enter the federal market, intending to provide cloud infrastructure to U.S. government agencies and the defense sector.