The Company Testing Wall Street’s Interest in A.I. Computing Power

The Company Testing Wall Street’s Interest in A.I. Computing Power

CoreWeave, a company providing computing power for A.I., was founded by three Bitcoin enthusiasts and is now preparing for its initial public offering (I.P.O.), making it the first prominent A.I. start-up to go public.

In 2016, three New York commodities traders—Michael Intrator, Brian Venturo, and Brannin McBee—became fascinated by cryptocurrencies. They began using Bitcoin to place bets on pool games and fantasy football, captivated by the price swings. Soon, they ventured into cryptocurrency mining, which requires significant computing power, and ordered two Nvidia graphics processing units (GPUs) from Amazon—high-powered chips capable of running complex calculations and processing large amounts of data. They began stockpiling these components, filling a garage and a warehouse.

By 2017, they had founded Atlantic Crypto to mine cryptocurrencies. When the crypto market collapsed two years later, the trio pivoted and rebranded the company as CoreWeave, raising funds to purchase GPUs from struggling crypto miners. Their gamble was that these chips would eventually fuel the development of artificial intelligence, which also requires immense computing power.

Their bet paid off. With the release of OpenAI’s ChatGPT in 2022 and the ensuing A.I. boom, the demand for computing power surged, placing CoreWeave in a prime position to capitalize on the trend.

“We saw this coming,” said Michael Intrator, CEO of CoreWeave, in a 2023 interview with The New York Times. “We were well-positioned for this transition.”

Now, CoreWeave is preparing to test Wall Street’s appetite. The company has filed for an I.P.O., and if successful, it would be the first major A.I. start-up to hit the stock market. The offering will serve as a gauge of investor interest in the sector, particularly amid a market correction that could impact the timing of the I.P.O.

CoreWeave’s I.P.O. is significant because it offers investors a direct opportunity to tap into the A.I. boom. Unlike large tech companies like Nvidia and Google, which operate across various sectors, CoreWeave is a “pure A.I. play,” focusing exclusively on A.I. chips and selling computing power to clients working on A.I. tools.

“It would be the first major tech I.P.O. of the year and one that directly aligns with the A.I. narrative that investors are eager to be part of,” said Brianne Lynch, head of market insight at EquityZen, which assists private companies and employees with stock sales.

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