CoreWeave Faces Scrutiny as CEO Defends Controversial AI Strategy

CoreWeave’s turbulent 2025 has sparked countless questions from investors, analysts, and anyone tracking the fast-moving AI data center market. Many are asking why CoreWeave’s stock has fluctuated so sharply, what happened with its failed Core Scientific acquisition, and whether its unique financing model—built around borrowing against Nvidia GPUs—is as risky as critics claim. In a candid conversation at the Fortune Brainstorm AI summit, CEO Michael Intrator tackled these concerns head-on, arguing that CoreWeave’s struggles are part of the natural growing pains of a company redefining how AI cloud infrastructure is built.

IPO Hype Fades as CoreWeave Confronts Its First Year Public

When CoreWeave went public in March, its IPO was positioned as one of the most anticipated tech listings of the year. Analysts expected a surge, given the company’s dominance in GPU-powered cloud services. Instead, the debut fell flat and quickly invited skepticism. According to Intrator, the lackluster reception wasn’t proof of weakness—it was the result of terrible timing. The offering happened just as President Trump’s tariffs reshaped market confidence, and right around Liberation Day, a moment of heightened economic uncertainty. Intrator emphasized that even in those conditions, the company executed what he still views as a “successful IPO,” though the turbulence that followed was impossible to ignore.

Stock Volatility Raises Concerns, But CoreWeave Says It’s Normal

CoreWeave’s stock price has been on a wild ride since the IPO. After debuting at $40, the share price surged above $150, only to settle lower in recent weeks. Intrator acknowledged the seesaw effect during the summit, but he pushed back on the narrative that volatility signals structural weakness. He argued that investors often take a “myopic” view of short-term price movement, missing the larger context of a company expanding aggressively in a sector defined by rapid innovation. For CoreWeave, rising and falling within the same year is a reflection of the breakneck pace of the AI market, not mismanagement.

Failed Core Scientific Acquisition Adds More Pressure

One of CoreWeave’s highest-profile setbacks came in October, when its attempt to acquire Core Scientific collapsed. Shareholders of the Bitcoin mining company reportedly questioned the deal’s strategic value, halting what could have been a major vertical expansion for CoreWeave’s cloud infrastructure business. While critics framed the failed acquisition as another sign of instability, Intrator presented it as a normal outcome for a company exploring bold strategic moves. Acquisitions, he argued, are complicated, and the firm remains focused on partnerships and growth—even if some opportunities don’t pan out.

A Year of Rapid Expansion and Strategic Purchases

Despite public bumps, CoreWeave has been on an aggressive expansion spree. The company has acquired several smaller firms to strengthen its data center capabilities, adding capacity just as demand for GPU-powered infrastructure skyrockets. These purchases have helped CoreWeave remain competitive in a market where companies like Amazon, Google, and Microsoft are racing to lock down GPU supply. Intrator framed this expansion not as reckless ambition but as a necessary sprint to capture market share in one of the fastest-growing sectors in tech.

The Controversial GPU-Backed Financing Model Explained

One of the most debated aspects of CoreWeave’s strategy is its financing structure. The company holds one of the world’s largest private collections of Nvidia GPUs, and it uses that hardware as collateral to borrow capital. Critics have called the strategy “circular,” arguing that a system relying on borrowed GPUs and borrowed money could become fragile. But Intrator defended the model as innovative, not risky. In his view, the GPUs are valuable financial assets—similar to real estate or manufacturing equipment—that can and should be leveraged to fuel growth. The model, he said, is part of a “new business framework” for cloud infrastructure providers.

Critics Say the Model Is Risky—CoreWeave Calls It Practical

Skeptics warn that borrowing against rapidly depreciating hardware could become dangerous if the AI market cools or Nvidia’s dominance shifts. Intrator countered that perspective, calling it overly simplistic. He argued that GPUs powering frontier models are appreciating assets in today’s climate, not depreciating ones. As long as demand for AI training and inference continues to surge, the hardware retains enormous value. Intrator believes most critics misunderstand the economics of modern compute, where scarcity and demand can push GPU values upward—even in volatile markets.

CoreWeave Positions Itself as an Industry Redefiner, Not a Follower

Throughout the interview, Intrator repeatedly returned to one theme: CoreWeave is building something new, and new models inevitably face resistance. The company’s goal is to rethink how cloud computing works—particularly for AI workloads that require specialized hardware. By moving fast, taking risks, and experimenting with financial structures, CoreWeave sees itself as an industry shaper rather than a traditional cloud provider. Intrator insisted the company’s setbacks should be viewed through that lens: charting a new course will always involve turbulence.

Market Headwinds Continue, But CoreWeave Remains Confident

Even as economic headwinds persist—from trade policies to fluctuating demand to shifting investor sentiment—CoreWeave maintains that its strategy will pay off. Intrator believes the company’s core strengths, including its GPU inventory, acquisition strategy, and early leadership in AI-focused cloud computing, will position it for long-term success. He also emphasized the firm’s resilience during difficult periods, noting that the team has consistently delivered results despite unpredictable conditions.

Can CoreWeave Win Back Investor Confidence?

CoreWeave enters 2026 with both significant momentum and serious questions surrounding its future. Investors want stability. Competitors want to catch up. Regulators want clarity as GPU financing models expand across the industry. Intrator remains unfazed. To him, CoreWeave’s journey—its IPO struggles, acquisition attempts, stock volatility, and unconventional financing—reflects the messy but necessary evolution of a company pushing AI infrastructure into a new era. Whether the market agrees remains to be seen, but CoreWeave appears determined to prove that its approach is not just viable, but foundational to next-generation cloud computing.