Core Viewpoint - The article highlights the remarkable rise of AI cloud computing company CoreWeave, which saw its stock price surge from an IPO price of $40 to $132, resulting in a market capitalization of approximately $64.6 billion, creating significant wealth for early investors like Leslie Wexner who achieved a return of 1500 times on his investment of $1.6 million [1][11]. Company Background - CoreWeave was founded in 2016 by three individuals who initially started by mining Ethereum using a GPU, eventually evolving into a company with a dedicated data center in New Jersey [3]. - The company initially sought funding from private investors and family offices rather than institutional investors, which led to early financing rounds that included notable figures like Leslie Wexner [4]. Growth and Market Position - The AI boom in 2022 increased demand for GPU resources, positioning CoreWeave as a key player in the market, attracting major tech companies as clients [5][6]. - CoreWeave completed significant funding rounds, including a $221 million Series B round and a $2.3 billion debt financing, raising over $12 billion in total from various investors [6][10]. IPO and Stock Performance - CoreWeave's IPO was initially met with challenges, including a reduced valuation and share count, leading to a first-day market cap of approximately $18.9 billion [8]. - Following the IPO, the stock price experienced a dramatic increase, driven by strong quarterly earnings and investor optimism regarding AI infrastructure demand, leading to a peak market cap of nearly $73 billion [9][10]. Recent Developments - CoreWeave announced a $9 billion all-stock acquisition of cryptocurrency mining company Core Scientific, raising concerns in the market due to the high costs and the unrelated nature of the revenue [11]. - Despite the recent acquisition, the company's market cap has decreased to $64.6 billion, but early investors like Wexner still hold significant value in their shares [11]. Industry Context - The article discusses the broader AI landscape, noting that companies like NVIDIA have reached unprecedented valuations, with NVIDIA's market cap surpassing $4 trillion [13]. - The rapid growth of AI companies has led to extraordinary returns for early investors, with some achieving returns exceeding 1000 times their initial investments [15]. - However, there are warnings about potential market bubbles and the sustainability of such rapid growth, as many AI companies are still not profitable and face high debt levels [16].