CoreWeave's Huge IPO Is Becoming a Disaster, Spelling Trouble for the AI Industry

The AI industry has been a roller coaster ride, to put it lightly. Selling promises of an automation revolution, startups and established tech giants alike have courted billions in funding to fuel AI development. That's led to early-adoption disasters, Wall Street burnouts, and a huge drop in support for AI from businesses around the globe. Now, the sector faces its toughest challenge yet: the first ever pure-play AI startup to go public, CoreWeave. Once an unknown player in the AI space, CoreWeave's basic pitch is to provide processing infrastructure to AI companies. The startup rose to prominence on the back of deep-pocketed tech investors like Mark Klein, whose $25 million stake started an avalanche of investments from tech firms, hedge funds, and venture capitalists. To those financiers, CoreWeave represents the "picks and shovels of the AI universe," making this IPO a bellwether for future AI public offerings, as well as the health of the turbulent tech market more broadly. Tho ... Read full article.