Is CoreWeave’s $2.7 Billion Valuation Too Low or Just Right?

“We assumed this was going to happen. We were well positioned for this transition.”

That was how Michael Intrator, CEO of CoreWeave, described the company’s foresight in shifting from crypto mining to artificial intelligence. It was 2023, and CoreWeave had just found itself at the center of an AI boom triggered by OpenAI’s ChatGPT. Demand for computing power had exploded, and the company, once a struggling crypto venture, was suddenly sitting on one of the most valuable resources in tech: high-performance GPUs.

Now, CoreWeave is gearing up to find out if it’s once again in the right place at the right time, this time with Wall Street's watchful eye. The company’s upcoming IPO, which aims to raise up to $2.7 billion, will serve as a test of how investors feel about AI infrastructure, especially in a climate where the ups and downs of tech stocks have dampened enthusiasm.

CoreWeave’s origins trace back to 2016, when three New York commodities traders, Michael Intrator, Brian Venturo, and Brannin McBee began experimenting with Bitcoin. Initially, they used the cryptocurrency for betting on pool games and fantasy football, but their interest deepened as they saw the potential in mining digital assets. They ordered Nvidia GPUs, stockpiled hardware in garages and warehouses, and, by 2017, launched Atlantic Crypto to mine cryptocurrencies.