Shares of AI cloud computing firm CoreWeave (CRWV) skyrocketed on May 16, 2025, following the disclosure of a significant ownership stake by chip titan Nvidia. This revelation has sparked heightened interest from corporate and institutional investors in the newly public company. As trading volumes soared, the stock surged 26.3% in New York, catapulting its market cap beyond $38 billion. By the close of the day, CRWV was trading around $81, up 23%, according to Yahoo Finance.
Nvidia’s Strategic Bet on CoreWeave
The catalyst for CoreWeave’s market rally was Nvidia’s regulatory filing, showing a $900 million stake in the company at the close of Q1. If Nvidia held on to these shares, the value has more than doubled since March 31. Nvidia’s initial public offering (IPO) stake was a hefty 17.9 million shares, CNBC reported, underscoring the chipmaker’s confidence in CoreWeave’s trajectory.
CoreWeave’s stock has more than doubled since its late-March IPO, where it debuted at $40 per share. This performance eclipses the Nasdaq Composite Index and the broader US stock market, highlighting CoreWeave’s appeal in a volatile market environment. The Nvidia news eclipsed CoreWeave’s first-quarter earnings, which showed a 420% revenue jump but also a 487% rise in operating expenses. The net loss widened by 143% year-on-year, initially spooking investors when the results were announced on May 14.
CoreWeave’s Transformation Journey
CoreWeave’s journey is a tale of adaptation and foresight. Founded in 2017 as Ethereum mining entity Atlantic Crypto, the company pivoted from digital assets amid the bear market of 2018. By 2019, it had rebranded to CoreWeave and shifted its focus to cloud computing, leveraging its GPU infrastructure—a move that positioned it perfectly to capitalize on the AI boom. This strategic shift mirrors broader trends in the industry, such as the emergence of AI-Powered Court System Is Coming to Crypto With GenLayer, highlighting the transformative potential of AI in various sectors.
The company’s strategic pivot bore fruit with a landmark IPO, bolstered by its unique relationship with Nvidia. CoreWeave’s allure doesn’t stop there. In March, Cointelegraph reported an $11.9 billion agreement with OpenAI to provide AI infrastructure for ChatGPT—an alliance that underscores its burgeoning influence in the AI sector.
The Road Ahead in a Booming Market
CoreWeave operates within the expansive cloud computing industry, projected to balloon into a $2 trillion market by 2030, per Goldman Sachs. This sector’s growth is fueled by the burgeoning adoption of AI applications across industries. Meanwhile, Fortune Business Insights forecasts the global cloud AI market could near $600 billion by 2032, with a compound annual growth rate of 28.5%. This aligns with the rise of AI Crypto Agents Are Ushering in a New Era of ‘DeFAI’, which further illustrates the integration of AI in financial technologies.
While the future looks promising, questions linger about CoreWeave’s ability to sustain its meteoric rise. The company must navigate its ballooning expenses and widen its revenue streams to maintain investor confidence. Yet, with Nvidia’s backing and strategic partnerships like that with OpenAI, CoreWeave seems well-poised to ride the AI wave.
As investors digest these developments, the spotlight remains firmly on CoreWeave. Will it continue to defy market expectations? Can it navigate the challenges of rapid growth? The answers to these questions will shape the company’s narrative in the coming months, keeping analysts and investors on their toes.
Source
This article is based on: Crypto miner turned AI provider CoreWeave adds billions in market cap
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
