This Nvidia-Backed Artificial Intelligence (AI) Unicorn Is About to Go Public. Here Are 2 Reasons I Won't Be Investing.
Data center start-up CoreWeave is going public soon in a deal worth approximately $2.5 billion.
For many people, investing in the stock market is the most effective way to build wealth. Unless you're an accredited investor, accessing opportunities in private companies is rare. That said, every now and again, a private company becomes large enough that investors consider the potential of an initial public offering (IPO).
Private companies that have eclipsed a valuation of $1 billion or more are often referred to as unicorns in the financial world. CoreWeave, an artificial intelligence (AI) start-up with the financial backing of none other than Nvidia (NASDAQ: NVDA) , recently filed its S-1 with an expected valuation of approximately $24 billion.
While the combination of AI, support from Nvidia, and a highly anticipated IPO might sound like a recipe for making a fortune, here are two reasons why I won't be chasing CoreWeave's IPO.
