When it comes to recent initial public offerings (IPOs), companies like Reddit (NYSE: RDDT) and Tempus AI (NASDAQ: TEM) have stood out due to their strong performance. However, likely the most talked-about company to go public in 2025 is one with strong ties to the most talked-about company in the market, NVIDIA (NASDAQ: NVDA). That company is CoreWeave (NASDAQ: CRWV), an AI cloud infrastructure stock. NVIDIA, the world’s largest semiconductor company, owns approximately 6% of CoreWeave’s outstanding shares. Although it got off to a rocky start, CoreWeave’s stock has performed very well since going public, up around 34% as of the May 7 close.

But, despite the buzz around the company because of its ties to NVIDIA, investors should really ask: What does CoreWeave actually do, and how should they view the company going forward? The analysis below will answer these questions.

CoreWeave’s Mission: Get Cutting-Edge AI Infrastructure to Customers as Fast as Possible

Understanding “AI cloud infrastructure” can seem overwhelming, but CoreWeave’s business isn’t too complicated. The company has amassed around 250,000 NVIDIA graphics processing units (GPUs), highly advanced chips that power cutting-edge AI model training. The company rents out these GPUs to other firms that want to use them to train AI models.

This is similar to what companies like Microsoft (NASDAQ: MSFT) do through their Azure cloud business. Importantly, however, CoreWeave only rents out computing power for AI purposes, unlike Microsoft and other cloud providers, which rent out computing power for AI and traditional computing tasks.

CoreWeave places significant emphasis on its often being one of the first companies to get its hands on the latest GPUs. In its S-1 registration filing, the company says, “Our success is dependent on our ability to sustain innovation and technology leadership in order to maintain the competitive advantage of our solution and to bring the latest GPUs to market faster than our competition.”

Getting the latest GPUs to market first is vital to the company’s customers. This allows them to develop stronger AI models faster and for less money, gaining an advantage in the AI market. Additionally, the rapid demand for these GPUs means that there are often shortages.

CoreWeave’s direct relationship with NVIDIA helps it avoid getting caught up in these shortages.

Source : https://www.nasdaq.com/articles/investing-coreweave-key-insights-nvidia-backed-ai-ipo