From ambitious to compromising with the market, "NVIDIA's favored child" CoreWeave's IPO scale has significantly shrunk.According to media reports, after the U.S. market closed on Thursday, CoreWeave set its IPO offering price at $40 per share, with expected financing reduced to about $1.5 billion. This is far from the company's initial target of $4 billion and even lower than the $2.7 billion announced during last week's roadshow.This series of reductions indicates that market interest in CoreWeave is not as strong as expected. Investors believe that CoreWeave faces a high concentration risk among its customers, and its deep ties with NVIDIA and Microsoft have also undermined investor confidence, raising concerns about the sustainability of its business model.The relationship between CoreWeave and NVIDIA is complex and interdependent. NVIDIA is not only CoreWeave's sole GPU supplier but also holds a 5.97% stake and is its second-largest customer. This deeply intertwined relationship raises the question: Why does NVIDIA need to pay to use its own produced GPUs? An anonymous analyst pointed out:NVIDIA accounts for 15% of CoreWeave's revenue, while the latter has borrowed billions to purchase NVIDIA's GPUs. Why does NVIDIA need to pay someone else to use its own GPUs? This seems like a strategy aimed at creating competitive tension for NVIDIA's GPUs outside of large cloud service providers, thereby gaining pricing leverage.As the incubator of CoreWeave, NVIDIA will participate as an anchor investor in this IPO. According to media reports, NVIDIA's support will also include $250 million in new orders, which is likely an additional investment to the $320 million in server time agreed upon in April 2023.Investor Confidence Lacking, Sustainability of Business Model QuestionedAccording to media surveys, when asked, "What is the least attractive aspect of CoreWeave's finances?" more than half of the respondents pointed out that "customer concentration" (mainly referring to Microsoft and NVIDIA) is the biggest issue.Wall Street News also reported today that CoreWeave may be the "canary in the AI bubble." In recent years, CoreWeave has frequently been rumored to be involved in a "revenue roundtripping" structure formed by Microsoft, NVIDIA, and OpenAI, leading to investor distrust and further questioning of the company's true revenue structure and sustainability.One investor specifically pointed out:CoreWeave's largest customer, Microsoft, is openly telling investors that it no longer needs CoreWeave and will start building its own data centers from now on. If this is really just to provide "overflow" capacity for Microsoft, then this is a difficult model to invest inAnother investor raised deeper concerns:I don't like indirectly investing in OpenAI because it feels like betting on Sam Altman's fundraising ability, first Microsoft, now SoftBank, and then... Saudi Arabia? The risk curve is getting further away.In addition, 90% of respondents believe that CoreWeave does not have a sustainable competitive moat.Several interviewed investors candidly stated, "Their moat is just the priority access to GPUs—nothing more," "Capital relationships are a barrier, but this won't last long," "In the short term, they have the capacity the market needs, but not in the long term. Anyone can buy GPUs, cluster them together, and then sell the capacity to larger players."