"CoreWeave has been rocked by dizzying stock swings-with its stock currently trading 52% below its post-IPO high-and a frequent target of market commentators, but CEO Michael Intrator says the company's move to the public markets has been "incredibly successful. And he takes the public's mixed reaction in stride, given the novelty of CoreWeave's "neocloud" business which competes with established cloud providers like Amazon AWS and Google Cloud."
"When you introduce new models, introduce a new way of doing business, disrupt what has been a static environment, it's going to take some people some time," Intrator said Tuesday at Fortune's Brainstorm AI conference in San Francisco. But, he added, more people are beginning to understand the CoreWeave's business model."
"As Fortune reported last month, CoreWeave's rapid rise has been fueled by an aggressive, debt-heavy strategy to stand up data centers at unprecedented speed for AI customers. And for now, the bet is still paying off. In its third-quarter results released in November, the company said its revenue backlog nearly doubled in a single quarter-to $55.6 billion from $30 billion-reflecting long-term commitments from marquee clients including Meta, OpenAI, and French AI startup Poolside. Both earnings and revenue came in ahead of Wall Street expectations."
CoreWeave completed a March IPO priced at $40 per share and has traded with extreme volatility, currently 52% below its post-IPO high while still above its IPO price. The company operates a "neocloud" model competing with major cloud providers and pursued rapid, debt-heavy expansion to build AI-focused data centers. Revenue backlog nearly doubled to $55.6 billion from $30 billion, driven by long-term commitments from Meta, OpenAI, and Poolside. Quarterly earnings and revenue beat expectations while overall debt levels increased to finance infrastructure growth amid challenging market conditions and tariff-related headwinds.
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