Michael Intrator, co-founder and CEO of Coreweave, addressed critics regarding the company's operational model, stock performance, and industry investment practices at Fortune's AI Brainstorm summit in San Francisco on Tuesday. Intrator stated the AI cloud infrastructure provider is establishing a "new business model" for cloud computing, leveraging its Nvidia GPU collection as collateral for financing.
Coreweave's stock, which debuted at $40 in its March 2025 IPO, has experienced significant fluctuations, climbing above $150 before settling around $90. Intrator attributed some of this volatility to what he described as a "challenging environment" following President Trump's tariffs, which he noted were implemented shortly after the IPO. He acknowledged the stock's "see-sawing" but expressed pride in the company's accomplishments despite these "incredible headwinds." Critics have, at times, compared the stock's movements to those of a meme stock, while reports indicate uncertainty stemming from the company's debt levels.
During the summit, Intrator also defended the practice of "circular" business deals within the AI industry, where companies invest in one another. With Nvidia acting as both an investor and a GPU supplier to Coreweave, Intrator dismissed concerns regarding long-term economic stability, asserting that such collaborations are essential for companies addressing "a violent change in supply and demand."
The company, which began as a crypto-miner before pivoting to AI infrastructure, has pursued an aggressive expansion strategy. In October, a planned acquisition of business partner Core Scientific faltered due to skepticism from the target's shareholders. However, Coreweave has completed several acquisitions, including AI developer platform Weights and Balances in March, agent training startup OpenPipe in September, and Marimo and Monolith in October. Additionally, Coreweave has expanded its cloud partnership with OpenAI, valued at up to $6.5 billion, and announced plans to enter the U.S. federal market to provide cloud infrastructure to government agencies and the defense industrial base.
