AI Startups $32 Billion Deception EXPOSED as Jensen Huang’s Side-Hustle…

CoreWeave just hit the IPO launch button, and if you haven’t been paying attention, this AI cloud-hosting unicorn went from crypto mining reject to Nvidia’s golden child in record time. Now, it wants to cash in while AI hype is still hotter than a freshly minted $TRUMP coin. 

(Source: Giphy) 

In short, the company—backed by Nvidia, Microsoft, and a rogue’s gallery of hedge funds and banks—is aiming to raise $2.7 billion at a price range of $47 to $55 per share, putting its IPO valuation somewhere between $26 billion and $32 billion. Not bad for a company that started as a glorified Ethereum miner before pivoting to renting out Nvidia GPUs like a high-end Airbnb for AI companies. But here’s the real question: Is this IPO a golden ticket, or is CoreWeave just another overhyped tech company burning through cash like a degenerate Robinhood trader? 

Well, for starters, CoreWeave wasn't always the AI cloud sweetheart. It started in 2017 as a crypto mining firm, back when mining Ethereum was still a viable business model. But as digital assets tanked and GPU prices nosedived, CoreWeave did what any self-respecting opportunist would do: pivoted hard into AI computing. 

(Source: CNBC) 

They saw the AI boom coming before most people even knew what ChatGPT was, scooped up a ridiculous number of Nvidia GPUs, and started leasing them out to companies desperate for computational power. This wasn’t just a good move—it was a god-tier move. Why? Well because now, CoreWeave has 32 data centers packed with over 250,000 Nvidia chips, and its biggest customers include Microsoft and OpenAI, which account for a whopping 77% of its revenue. That’s a lot of eggs in one very expensive basket. 

For more context, CoreWeave pulled in $1.9 billion in revenue in 2024, which sounds great until you realize they also posted a net loss of $863 million. For comparison, in 2023, revenue was a low-ball $229 million, and they lost $594 million. Yes, you read that right—they grew revenue 700% in a year. But that’s like saying your car goes 0 to 100 real fast—right before it explodes. 

(Source: Bloomberg) 

Naturally, the company is spending aggressively to expand its AI cloud empire, but here’s the problem: AI infrastructure is a money black hole. Running a data center filled with top-tier GPUs is insanely expensive, and CoreWeave is still figuring out how to make that profitable. Now with that said, if there’s one reason to take this IPO seriously, it’s Nvidia—or more specifically, it’s Jensen Huang’s personal side hustle. 

CoreWeave was an early adopter of Nvidia’s AI chips, and its entire business model is built around buying loads of Nvidia GPUs and leasing them out to AI companies. Nvidia itself owns 1.2% of CoreWeave, and Microsoft, which is Nvidia’s biggest AI customer, makes up 62% of CoreWeave’s revenue. So really, this company basically exists to feed Nvidia’s AI chip empire. That could be a good thing (Nvidia is a literal money-printing machine right now) or a massive risk (if Nvidia ever decides to cut out the middleman, CoreWeave is screwed).

(Source: Giphy) 

But, but, but… the biggest question of the day, is should you actually look into buying this thing? CoreWeave is launching its IPO in one of the worst tech markets in years. IPOs have been deader than cable TV, and with market volatility, Trump’s tariff chaos, and investors suddenly remembering that interest rates exist, this is a hell of a time to go public. Plus there are still a few red flags in the mix here: CoreWeave is still hemorrhaging cash, the market for AI cloud hosting is about to get insanely competitive, and they’ve admitted to having “material weaknesses” in their internal financial controls (a.k.a. Not exactly reassuring). 

However, if you are a true AI believer and think the GPU cloud gold rush is just getting started, CoreWeave could be worth a look. The company is growing at a ridiculous pace, and as long as AI demand keeps skyrocketing, they’ll have plenty of customers willing to overpay for access to Nvidia’s hardware. Now, whether they can turn that growth into actual profits before the AI hype cycle collapses is another question entirely. 

(Source: Giphy) 

Meaning, if you buy now, you’re basically betting that Nvidia stays on top, Microsoft keeps paying, and CoreWeave figures out how to stop burning cash like a VC-funded dumpster fire. On the other hand, if you’re looking for a stable, profitable company, this ain’t it. This is a high-risk, high-reward bet on AI staying red-hot for the next decade. 

So yeah, do what you will with this information and place your bets accordingly. The fact that 77% of revenue comes from two core customers is one that definitely sparks concern, but hey, they have Nvidia behind them. And really, that’s the only thing that matters. For now, keep your eyes on CoreWeave and Nvidia and as always, stay safe and stay frosty! Until next time… 

P.S. You know that feeling when an insider sells $2.5 million shares of a chip stock that’s “supposed” to be the next Nvidia? If you don’t, then you need to join Stocks.News premium asap to get the first-hand look at these massive insider transactions before the rest of the retail world catches on. Spoiler: The stock has soared 400% over the last 12 months—so why in the hell is the Chief Technology Officer of this high-flying stock dumping his bags now? 

Stocks.News does not hold positions in Microsoft and Robinhood as mentioned in the article.