CoreWeave’s Huge IPO Is Becoming a Disaster, Spelling Trouble for the AI Industry

The artificial intelligence industry was riding the rotary ship, to put it lightly. Buying promises to automation revolution, startups and firm technology giants Either they collected billions in financing to provide artificial intelligence development. This led to early disasters, Wall Street Beirut, and a significant decrease in supporting artificial intelligence from companies all over the world.

Now, the sector faces the most difficult challenge so far: the first emerging company of artificial intelligence to play at all for the public brand, Coreove.

Once an unknown player in the artificial intelligence space, the Coreweave Stadium is the provision of infrastructure for processing to artificial intelligence companies. The company has increased against the background of technology investors such as Mark Klein, which started its $ 25 million share with a range of investments from technology companies, hedge funds and capitalists in the project.

For these financiers, Coreweave represents “the choices and shovel of the world of artificial intelligence”, making this public subscription a bell of public offers in the future, as well as the health of the turbulent technology market on a wider scale. Although investors hope that Coreweave will be for the Amnesty International Revolution, what was the jeans of the golden rush, the reality seems closer to the catastrophic public subscription in WeWork.

Initially, we were supposed to be offered last year with an evaluation of 35 billion dollars, and Coreave has been stopped since then with its offer and pointed to its great interest in expanding its value. It is now cutting the prices of its shares to up to 23 billion dollars, according to SemaforWhat is noticed that the company’s shares will start trading tomorrow.

However, a quick look at the cover reveals a company far from being ready for public subscription, not to mention this size, not to mention one with the future of the entire industry. As the technical critic Ed Zitron notes, the S-1 model-a bit of search for the body cavity Companies must be submitted before announcing the public – it reveals the company whose future depends on “explosive growth” in the artificial intelligence industry, whose present is raised by one customer.

“Coreove’s S-1 tells the story of a company that seems to be built for collapse, as more than 60 percent of its revenues depend on one customer, Microsoft.”

Although this type of association with technology monopoly can have benefits for a young company like Coreave, it also comes with enormous risks, not the least of which is that Microsoft eliminates its contract and leaves it to death.

This danger looked very real earlier this month, when Financial times She mentioned that Microsoft has withdrew from a number of official agreements with Amnesty International’s infrastructure due to delivery problems and final dates. Coreave has since denied that the technology giant has passed on any of its contracts, although this does not change the fact that Microsoft has cut rental contracts in the data center throughout the United States and Europe.

Any investors who hope for the longevity of Coreweave, is now running on the last Openai and cash injection at eleven o’clock by NVIDIA- Micro Chips Giant that needs this subscription to the general subscription-to stay on his feet for a long time enough to revolutionize artificial intelligence. “

How everything goes tomorrow is guessing anyone. As Zitron is noticed, the entire project is based on a dream that obstetric artificial intelligence will become a huge and profitable industry, and it depends on the huge data processing centers to flourish. This dream looks more void than this day, as Chinese Deepseek models support this type of artificial intelligence developed by Coreweave, and artificial intelligence profits remain largely imaginative.

With everything that rides it, Coreove should applaud this extent. As Zitron says: “If this company is in any other industry, it will be seen as it [utterly rancid]. With the exception, he is one of the holders of standard artificial intelligence, and so on, it is in the area of ​​distorting its reality. “

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