Coreweave, one of the most popular players in the artificial intelligence sphere (AI), requested an initial public offer (IPO) on March 3.
The company works in close collaboration with Bitcoin (BTC) Mine Core Scientific (Corz); The two companies have signed a multi -million dollar agreement for Core Scientific to build hundreds of infrastructure megawatts so that Coreweave executes their AI services. In fact, Coreweave is, with much, the biggest client of Core Scientific.
What a question raises: how will Coreweave’s OPI affect Core Scientific?
“The IPO of Coreweave will probably will have a correlated impact on Core Scientific,” said Wolfie Zhao, Chief of Research of Theminermag, Codendesk. “If the public debut of Coreweave is successful and maintains a strong income growth in the coming years, it will reinforce the position of Core Scientific as a reliable infrastructure provider, which guarantees a stable income flow of hosting the Coreweave GPUs.”
“However, if the AI market experiences a recession or the demand for high performance computing is weakened, the nucleus could face winds against similar, since its business is increasingly linked to the wider ecosystem,” Zhao added.
The OPI can end up being a big problem that the new Coreweave agreement of $ 12 billion with AI Heavyweight Openai, analysts of the Canaccord Genuity investment bank suggested in a March 12 note. The agreement will allow Coreweave to diversify its income away from Microsoft, which currently contributes approximately two thirds of the company’s income. This diversification should end up benefiting Core Scientific due to the fact that Coreweave is the largest customer of the company.
It is unlikely that this search for diversity harms the relationship between Coreweave and Core Scientific, the HC Wainwright investment firm analysts wrote on March 11. Coreweave’s OPI is another sign that the rumors that Coreweave would seek to eliminate its contract with Core Scientific is false. “From the 20,000 feet level, how in the world would make sense for Coreweave?” They wrote. The two companies not only have a long work history together, but regularly make agreements so that Core Scientific provides even more infrastructure to the hyperscalador of AI.
As for Core Scientific, the firm’s executive team is “excited” by the potential opi, a spokesman told Coindesk. “We are proud to be part of your trip to become a public company and we hope to support your continuous success. Nothing is more rewarding than seeing our customers grow, and we are excited to continue climbing next to them as new milestones reach.
