CoreWeave

“So I believe earlier this month, NVIDIA did a huge deal with Blackstone, BlackRock, Apollo, and Goldman Sachs. And they said, listen, we want more people to buy more GPUs. We're going to underwrite for you up to 25% the value of a GPU. That if you lend money t…”

“NVIDIA is really smart about this. They don't compete with their customers. NVIDIA takes a long view on everything. Why don't they even start with the NeoCloud? Why don't they just sell computer out the back door? Well, NVIDIA is really good. Jensen is really …”

“So I was speaking with CoreWeave at the end of the year last year, beginning of the year this year, you know, around New Year time and they said they were actually renting out H-one hundreds for higher prices than they had previously.”

“To this day, the only companies that have brought on more than 500 megawatts of power, In a year, are the hyperscalers, CoreWeave, Crusoe, and SpaceX.”

“You know, just having a data center and being a dumb, you know, essentially, like, rack provider is not actually, like, a great long-term business. It's pretty good now, but that's why, like, these companies, like CoreWeave, they want to offer services on top …”

“The fund had built concentrated positions In AI infrastructure companies, including Nebius, SanDisk, Micron, and CoreWeave, while also betting against software companies such as Adobe.”

“They have become a major investor in CoreWeave, and then CoreWeave is using that money to buy NVIDIA chips.”

“For a company like CoreWeave if they wanted to build a gigawatt of data center capacity, or most likely to lease it, that would be more, more likely for them. They're just not going to be able to do that. They don't have the credit profile to do that.”

“CoreWeave, they have, you know, three and a half gigawatts of contracted power. Contracted for that means signed leases for the most part, some self-built, mostly signed leases with third parties. And what you saw was that this number was about, if I remember …”

“They're at the point where they have become a major investor in CoreWeave, and then CoreWeave is using that money to buy NVIDIA chips.”

“I certainly think they can be sustainable.”

“When you're underpricing everything, if you look at CoreWeave and EBS, they're bleeding heavily. That means they're not covering the cost. The real test of shortage is when you're priced appropriately. It's a capitalistic system, so when you subsidize somethin…”

“I think CoreWeave has been an extraordinarily innovative company. I think they've solved a series of financial challenges with really innovative sort of financial engineering. They were the first to use debt very innovative way.”

“I do think at some point, Sandisk and Nebius and Core, we've all have to crash and Marvell and even Broadcom. At some point they have to crash at some level because they always, I think AI can grow infinite. Like we all approach the singularity, but eventually…”

“This is effectively giving up. It's saying, you know, it doesn't know how to effectively use this compute capacity to train models, or if it did, it wouldn't be worth the expense because it would still be behind OpenAI. And anthropic, and so therefore it's now…”

“The weakness in the whole story is your whole business is based off of OpenAI keeping this promise of building out the infrastructure. And last week in particular, when there was that Wall Street Journal report, which OpenAI pushed back on very strongly that l…”

“One person on the team, they've been able to spend with a couple thousand dollars of Claude tokens, they've been able to create this application that is GPU accelerated, runs on a server that we have at CoreWeave, and anytime we send it an image, it's able to …”

“Like CoreWeave has talked about these things are lasting five to six years and they're getting like almost 90, 95% of the pricing.”

“We actually went out and bought a bunch of A-one hundreds and donated them to a group that was working on Luther AI.”

“When you're thinking about what we do, we kind of live above the NVIDIA GPUs, but below the models.”

“Our first like large commercial was inflection.”

“Our clients come into us and they buy compute for five years, for six years. Our average contract is five years.”

“We use a six year depreciation. We believe that the GPUs will last in excess of six years, but we felt like that was a fair and reasonable approach to a technology cycle that's moving at this velocity.”

“CoreWeave has really been the innovator around a lot of the financing engines that have come to bear on this. We did the first GPU based loans.”

“CoreWeave, which is a company that many people haven't ever heard of, was able to go out and raise thirty five billion dollars in 18 months to build infrastructure at scale.”

“When you think about our cost of capital over the last two years, we have dropped our cost of capital by 600 basis points.”

“For years now, for four years, the depth of the demand for the service we provide has been relentless and overwhelms the global capacity of the world to deliver enough compute to enable all of the demand for artificial intelligence to be stated.”

“And as we entered twenty-twenty-three CoreWeave started to train models for OpenAI.”

“NVIDIA invested two billion in CoreWeave, but what's more important is that that's like sort of just like the sticker. What's really relevant is NVIDIA is going to work with CoreWeave to acquire and backstop and all these things, the land, the power, the energ…”

“I think it's completely fine, and I think, like, people are, like, freaking out and making narratives where there really shouldn't be one.”

“In the case of core wave, they were actually able to no backstop, right? They were able to just say, Hey, look, here's our Microsoft contract for this many GPUs.”

“Where we had maybe a hundred employees three years ago, now we have 2500 employees or so”

“There's no customer that represents more than 30% of our backlog, and so we've done an incredible job.”

“Everybody believes that this, that there's some differentiation in the plumbing of the liquid cooled data center, right? That's not where the differentiation lies. It's all the same pipe and valves and fittings. Like everyone's using the same things there. The…”

“If you took all of the other neoclouds and added their GPU fleets up, we would still be a multiple of all of them combined in terms of the number of GPUs that are up and running and delivered to clients.”

“We have the world's largest data set of how these things run, how they fail, and we've built all the recovery mechanisms and the software intelligence to help our customers run these things.”

“So there's really no difference between training infrastructure we deployed to build those capabilities and what our customers are ultimately using to serve them.”

“Six months ago, I would have said it was two-thirds training and one-third inference. It's probably close to fifty-fifty now.”

“Google went out and just You know, released a press release where they're building fifty billion dollars worth of infrastructure while they're still buying from everyone else they can. Microsoft is building internally, and they're buying from lots of other pla…”

“What we are doing Is we are making the majority of our investments by taking Long-term contracts from credit-worthy entities using those contracts as a way of raising money to build the infrastructure where the demand and the credit and the capital has already…”

“Within the five years of the contracted period with Microsoft, we pay for the infrastructure, we pay for the OPEX, we pay for the interest, and we earn an enormous margin on the infrastructure.”

“Meta that we signed a fourteen billion dollar contract with”

“No, it was SOFR plus 13 50 down to SOFR plus 400, right?”

“The idea that these things burn out in two or three years, like, it's kind of bunk, right? And from a physical perspective, Right. Within three years, these things are all still under warranty. So if they break, they get replaced. Right. But from a, like, this…”

“In addition to the H 100, which came out in 2023, right, we signed a term contract for the A 100, like within like the 95% of an original price range for on, like on term last week or two weeks ago. Like, that's crazy. Those GPUs are already five years old and…”

“NVIDIA has made two investments in CoreWeave. They made an investment of a hundred million dollars. And then they made an investment of and that was early, that was in the B round, I believe. . Brian Venturo: At a two billion dollar valuation. Michael Intrator…”

“From the perspective of, you know, the company is worth forty billion dollars.”

“And right now I don't think that power itself, meaning grid connections and the generation capacity is the limiting factor. Right now it's the construction and trades. So it's human labor and supply chain that are the limiting factor is that you went from a ma…”

“In three years, power is going to be an issue.”

“My hot take on them, it's in better shape than the haters say.”

“And there's no reason actually, listen, I'm not saying that, that these are even the best companies we've ever had, but there's no reason I don't think they will rebound as the overall trends. I think these are just jitters. The overall trend I think is still,…”

“They, these companies become the high octane bet on AI. If you think it's going to go up, you buy Google, you get 20% appreciation, but if you buy CoreWeave and you're right, you could get a double. You're right. So they are the highly amplified bet because th…”

“First of all, there's a reason why they sponsor the Core Weaves and the next generation of NeoClouds, because they're like, those guys ain't going to build their own chip.”

“CoreWeave, which is the poster child for the bad behavior that I'm talking about. We're talking about a startup that is borrowing money to build data centers for another startup. They're both losing tremendous amounts of cash, and yet they're somehow being abl…”

“OpenAI promised me three hundred billion. They also promised Microsoft two hundred billion, Amazon thirty eight billion, CoreWeave twenty five billion. In total, 1.4 trillion dollars.”

“U.S. Bank, J.P. Morgan, Mitsubishi Bank, those are the companies lending to CoreWeave.”

“If you told Amazon and Microsoft, and certainly if you told companies like Oracle and CoreWeave, no, no, no, no. These chips will only generate meaningful revenue for three years. Their profitability would decline very dramatically. So again, from Microsoft, A…”

“When CoreWeave was first raising in private markets, I was like, oh my god, this is, they're reselling a commodity, you know, they're a middleman, they're a broker of compute, it's gonna be low margin, yada, yada, yada. How wrong was I?”

“I think at some point, like they'll probably, you know, Corweave and all these things will probably go down like 70%.”

“They are the anchor tenant on our data center.”