CoreWeave ( CRWV) is an AI cloud computing company that delivered multibagger gains post-IPO. Soaring AI demand and spending on computing and data centers allowed it to land significant contracts and gain steam, though the momentum has come to an end and reversed.

Corporate insiders will soon be able to unload shares, which could cause some selling pressure but also ultimately reduce volatility by increasing the stock’s float.

CoreWeave is dependent on debt to expand and fund its operations, a precarious situation if demand for artificial intelligence (AI) computing capacity slows. Artificial intelligence (AI) infrastructure provider CoreWeave (NASDAQ: CRWV) is tapping into incredible demand for AI computing capacity.

CoreWeave ($CRWV) shares are cratering as investors prepare for the end of the AI data center firm’s IPO lock-up period. Indeed, when the lock-up

Shares of CoreWeave (NASDAQ: CRWV) are falling on Thursday, down 11.4% as of 12:52 p.m. ET. The drop comes as the S&P 500 and Nasdaq Composite were down modestly. The artificial intelligence (AI)-focused cloud provider's stock continues to slide after releasing its second-quarter earnings earlier this week.

CoreWeave (NASDAQ:CRWV) shares had dropped 10% by noon Thursday trading as its initial public offering lock-up period is slated to come to an end when the market closes today. The end of the lock-up period means early investors and company insiders will be allowed to sell their shares.

CoreWeave’s stock fell 20% after the AI data center provider reported a larger-than-expected loss, according to CNBC. CoreWeave reported a second-quarter adjusted loss of 27 cents per share, exceeding the 21-cent loss expected by analysts polled by LSEG.