AI's "Biggest Test" Is Turning Into a Catastrophe as CoreWeave Flounders

So far, the AI industry has enjoyed smooth sailing. It's courted billions in slap-happy investments and sign-first, read-later contracts, ballooning some Silicon Valley companies to the top of the financial food chain. Now it's facing its toughest challenge yet in the form of CoreWeave, the AI processing company that went public on the stock market this week and the first all-AI startup to do so. It was said to be a major test for the industry — and so far it's failing, miserably. CoreWeave stocks hit the public market with a wet thud on Friday, opening at $39, down slightly from its IPO price of $40 per share, which was already reduced from the highest projection of $55 per share the previous week. The company's hopes of raising $4 billion in the offering thus fell way short at a soggy $1.5 billion. That flat opening helped spurn a rough day for the Magnificent 7 — the term used to describe Google, Nvidia, Amazon, Tesla, Meta, Apple, and Microsoft — which all tumbled following anno ... Read full article.