CoreWeave’s $1.7 Billion AI Bet: Big Deal or Big Risk?

Announced on March 4, the decision—expected to close in the first half of the year—will combine CoreWeave’s computing power with Weights & Biases’ widely used tools for building and managing AI models.

Weights & Biases serves over a million AI engineers, including those at OpenAI, Meta, and NVIDIA. However, the acquisition also raises concerns about competition and market control, as CoreWeave may encourage existing Weights & Biases users to switch to its cloud services, which potentially limits customer choices.

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Some analysts have questioned CoreWeave’s business model and risks ahead of its public offering. In a post on X, venture capitalist Matt Turck described its initial public offering (IPO) as “the first of the Generative AI era” but warned that the company is sometimes seen as more of a “real estate play” than a true technology firm.

Regulatory challenges may also arise. CoreWeave has financial backing from NVIDIA, which could attract scrutiny over competition and market fairness.

Despite these concerns, Weights & Biases CEO Lukas Biewald remains optimistic, stating, "We can build many more useful things for our mutual customers". He emphasized the potential for new innovations at the intersection of software and hardware.

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