Artificial intelligence startup CoreWeave's shares closed up 42% at $52.57 on Tuesday, the third day of trading, exceeding their initial public offering price of $40. This surge added more than $7 billion to the company's market value.

The Nvidia-backed stock debuted at $39 on Friday, granting the AI infrastructure firm a significant valuation on a fully diluted basis. CoreWeave faced challenges Thursday when it downsized its IPO.

Nvidia contributed a portion of CoreWeave's IPO, which raised $1.5 billion. CoreWeave, based in Livingston, New Jersey, provides access to data centers and high-powered Nvidia chips, which have become essential for developing AI applications.

Founded in 2017 as an Ethereum-focused crypto miner, CoreWeave shifted its focus to AI a few years later, closing its mining operations after "The Merge," which reduced rewards for miners.

In its IPO filing earlier in March, CoreWeave reported revenue of $1.92 billion for 2024, up from $228.9 million the previous year. However, its net loss widened to $863.4 million during the same period, compared to $593.7 million in 2023. Notably, approximately two-thirds of CoreWeave's revenue came from Microsoft, its largest customer.