CoreWeave, backed by Nvidia, made its public debut with shares ending flat after opening nearly 3% below the IPO offer price of $40. With a valuation of $23 billion, the IPO raises concerns about market appetite for AI infrastructure amid tariff uncertainties and growing competition.

Mixed Debut in a Shaky Market

CoreWeave’s stock opened at $39 and struggled to make an impactful impression, coinciding with a challenging session that saw the Nasdaq drop by 2.7%.

Investor Tensions Heighten

Many investors expressed reservations at the roadshow, citing worries about the company’s financial viability and the capital-intensive nature of AI infrastructure. Kamran Ansari from Kapital Ventures expressed skepticism over CoreWeave’s ability to sustain growth amidst volatile conditions.

“I don’t know how receptive the market’s going to be,” he remarked.

Moreover, competition from low-cost alternatives like China’s DeepSeek, claiming to deliver similar outputs with fewer resources, begs the question of CoreWeave’s ongoing viability.

The Nvidia Factor and Highlighted Metrics

Nvidia’s involvement provided a $250 million order contributing to the IPO, which raised a total of $1.5 billion. Despite having to reduce its offering, CoreWeave’s IPO stands as the largest AI-related initial public offering recorded since 1995.

Outlook and Strategic Considerations

The flat closing price raises alarms in a market already cautious about sectors like AI, particularly as competitors like Oracle and Microsoft have faced losses this year.

As CoreWeave seeks to demonstrate its market position, future performance will depend on achieving sustainable growth in the face of stiff competition and macroeconomic pressures.

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