CoreWeave, Inc. (CRWV) shares plummeted 10.19% in after-hours trading on Wednesday, following a volatile day of trading. The AI cloud computing company's stock had surged earlier in the day on news of potential collaboration with tech giant Google, but investors appeared to take profits and reassess the stock's valuation in extended trading.

The initial surge came after reports that Alphabet's Google is in advanced talks to rent state-of-the-art Nvidia Blackwell chips for running AI from CoreWeave. This potential partnership highlighted CoreWeave's growing importance in the AI infrastructure space and its close ties with Nvidia, its main supplier and second-largest customer. The companies are also discussing a deal for CoreWeave to house Google's TPU chips, further cementing their relationship.

However, the significant after-hours drop suggests that investors may be reevaluating CoreWeave's rapid ascent since its recent IPO. The stock has been highly volatile, with large swings in both directions. The pullback could indicate profit-taking or concerns about the sustainability of CoreWeave's growth trajectory, despite the positive news about potential collaboration with Google. As the AI market continues to evolve, investors appear to be cautiously weighing the long-term prospects of companies in this space against their current valuations.