Artificial intelligence infrastructure firm CoreWeave on Monday completed its acquisition of Weights & Biases, which operates an AI developer platform. The acquisition aims to build up the software business of CoreWeave stock.
A cloud computing services provider, CoreWeave processes AI workloads on Nvidia chip-equipped servers. Meanwhile, Weights & Biases sells software tools to train, fine-tune, govern, and manage AI models. CoreWeave reportedly acquired Weights & Biases for $1.7 billion.
Weights & Biases competes with many startups such as Neptune.ai, Seldon, FedML, Qwak, Galileo, Striveworks, Arize and Tecton.
CoreWeave: Building AI Platform
"While CoreWeave is primarily serving to run Gen AI data centers today, the company is aiming to push further up the stack into the platform and application software layers," said Morgan Stanley analyst Keith Weiss in a recent report. "CoreWeave's Weights & Biases acquisition is evidence of moving into the AI developer market."
The AI trend has relied mainly on large language models, or LLMs, which require massive amounts of data to be trained. Further, First quarter earnings for CoreWeave stock are due May 14.
On the stock market today, CoreWeave stock rose 1.5% to 52.36 in midday trading.
With Monday's gain, CoreWeave shares trade about 25% above the IPO offering price of 40. CoreWeave went public in late March.
CoreWeave Initiated With Neutral Rating
Nvidia stock dipped a fraction on Monday to 113.63 in morning trading. Further, Nvidia stock has shed 15% in 2025.
Nvidia owns a 5% stake in CoreWeave. While there's always a tight supply of Nvidia AI chips, CoreWeave and others stand out by their ability to buy Nvidia devices, including its newest Blackwell accelerators.
Meanwhile, MoffettNathanson initiated coverage on CoreWeave stock with a neutral rating on Monday.
"The bull case for CoreWeave isn't complicated: it's a pure play provider of AI infrastructure during a time of exploding demand and pinched supply," said Nick Del Deo, analyst at MoffettNathanson, in a report. "But there are substantial risks to consider. As GPU supply and demand eventually move into balance, large customers (most notably Microsoft) may no longer need to lean as heavily on outsourced compute. That would also be negative for pricing and returns, as could hyperscaler success with custom silicon. CoreWeave's staggering data center lease commitments – over 5 times what was in service as of year-end 2024 – pose risks if any part of its growth model falters."
Morgan Stanley, meanwhile, has projected that CoreWeave will spend $10 billion in 2025 on its data center build-outs. CoreWeave's data centers are designed from scratch for AI workloads, with specialized cooling, networking and other features.
In 2024, 77% of CoreWeave's revenue came from two customers, with Microsoft accounting for 60%. While some analysts project a big AI market opportunity for CoreWeave, others fret about customer concentration and debt. From an accounting view, high depreciation on data center servers is another concern because it lowers earnings.
Meanwhile, CoreWeave stock owns a Relative Strength rating of 96 out of a best possible 99. Also, CoreWeave stock has a relatively small float, making it more volatile.
Additionally, CoreWeave is among the top artificial intelligence stocks to watch.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
