After Nvidia disclosed its large shareholding, AI provider CoreWeave, which has transformed from a crypto miner, saw its market capitalization increase by billions of dollars.
Source: Cointelegraph Original: “After Nvidia disclosed a large stake, the market value of AI provider CoreWeave, which has transformed from a cryptocurrency miner, increased by billions of dollars.”
On May 16, the stock price of AI cloud computing company CoreWeave (CRWV) surged significantly after chip giant Nvidia disclosed a large stake, indicating increasing interest from enterprises and institutions in this newly listed company.
CRWV stock surged by as much as 26.3% in New York trading, pushing its market value above $38 billion. According to Yahoo Finance data, the trading volume was more than twice the daily average.
The last trading price of the stock was about $81, up 23% on the day.
CoreWeave’s stock price increase was triggered by regulatory filings from Nvidia, which showed that as of the end of the first quarter, the company held $900 million worth of CRWV shares. Assuming Nvidia has not sold any shares since March 31, the value of its holdings has more than doubled.
According to CNBC, NVIDIA held 17.9 million shares during CoreWeave’s initial public offering (IPO).
CoreWeave’s stock price has increased by over 100% since its IPO price of $40 at the end of March. During this period, its performance has far exceeded that of the Nasdaq Composite Index and the overall US stock market.
Nvidia’s disclosure overshadowed CoreWeave’s Q1 fiscal report for 2025, which showed a revenue surge of 420%, but operating expenses also skyrocketed by 487%. Compared to the same period last year, the company’s net loss widened by 143%. Its stock price dropped shortly after the earnings report was released on May 14.
CoreWeave’s story began in 2017, when it was an Ethereum (ETH) mining company called Atlantic Crypto. After the bear market began the following year, the company gradually started to move away from the digital asset space.
By 2019, it was renamed CoreWeave and began leveraging its GPU infrastructure to provide cloud computing services. Subsequently, the company rode the wave of the AI boom and successfully achieved a large-scale IPO thanks to its unique relationship with NVIDIA.
CoreWeave has also attracted other major investors. Cointelegraph reported in March that OpenAI struck a deal worth $11.9 billion with the company to provide AI infrastructure for the massive data needs of ChatGPT developers.
The cloud computing industry where CoreWeave operates has a broad prospect. According to a forecast by Goldman Sachs, with the popularization of AI applications, the total market size of the industry is expected to reach $2 trillion by 2030.
Another estimate by Fortune Business Insights suggests that the global cloud AI market could approach $600 billion by 2032, with a compound annual growth rate of 28.5%.
Related topics: What is browser-based cryptocurrency mining and how does it work?