Coreweave, one of the hottest players in the sphere of artificial intelligence (AI), filed a first public offer (IPO) on March 3.
The company works in close collaboration with Bitcoin (BTC) Miner Core Scientific (CORZ); The two companies have signed an agreement of several billion dollars for Core Scientific to build hundreds of infrastructure megawatts for Coreweave to manage its AI services. In fact, Coreweave is by far the biggest customer of Core Scientific.
What raises a question: how will Corewave’s IPO affect Core Scientific?
“Coreweave’s IPO will probably have a correlating impact on Core Scientific,” said Coindesk Wolfie Zhao, research manager at Theinermag. “If the public beginnings of Coreweave are successful and this maintains strong growth in income in the coming years, it will strengthen the position of Core Scientific as a reliable infrastructure provider, guaranteeing a stable source of income by hosting the GPUs of Coreweave.”
“However, if the AI market undergoes a slowdown or the demand for high -performance calculations is weakening, the nucleus could face similar opposite winds, because its activities are increasingly linked to the wider IA ecosystem,” added Zhao.
The IPO could end up being less important than the new $ 12 billion coreweave agreement with the Heavyweight Openai AI, analysts from the Canaccord Genuity Investment Bank suggested in a March 12 post. The agreement will allow Coreweave to diversify its income far from Microsoft, which currently contributes to around two thirds of the company’s income. This diversification should eventually benefit Core Scientific due to the fact that Coreweave is the biggest customer of the company.
It is unlikely that this quest for diversity harms the relationship between Coreweave and Core Scientific, analysts of the investment company HC Wainwright wrote on March 11. The IPO of Corewave is another sign than rumors that Coreweave would seek to remove his contract with Core Scientific is false. “From the level of 20,000 feet, how does the devil would it make sense for Coreweave?” They wrote. Not only do the two companies have a long history of work together, but they regularly conclude agreements for Core Scientific to provide even more infrastructure to hyperscal the AI.
As for Core Scientific itself, the company’s management team is “delighted” with the IPO, a spokesperson told Coindesk. “We are proud to be part of their career towards becoming a public company and we are impatient to support their continuous success. Nothing is more rewarding than seeing our customers grow, and we are delighted to continue to evolve alongside them as they reach new steps.
