CoreWeave's IPO debut tests neocloud viability and reliance on Nvidia GPUs.

A cloud computing provider specializing in GPU-accelerated AI infrastructure, CoreWeave saw tepid demand for its highly publicized IPO underscoring the notion that timing is critical in the IPO market. But the broader message has implications for AI giants like Microsoft and NVIDIA.

CoreWeave Inc. slipped 2.5% in its market debut after the cloud-computing provider raised $1.5 billion in a downsized initial public offering.

The startup that rents out access to Nvidia chips priced its initial public offering below expectations and ended its first day of trading flat on Friday, a sign of flagging investor enthusiasm for artificial-intelligence companies as well as the chilly state of the U.

Shares in CoreWeave, a cloud computing company backed by Nvidia, fell on their market debut Friday, following a $1.5 billion initial public offering that priced below its expected range.

One analyst says investors seem to be taking issue with CoreWeave specifically, which he views as “nothing more than [a] highly leveraged, off-balance-sheet arrangement for Nvidia.”

CoreWeave's debut has been eagerly awaited by investors as a sign of the strength of the AI trade as well as the appetite for new IPOs.