CoreWeave

“Its revenue soared more than 700 last year to almost two billion, but the company recorded a net loss of eight hundred and sixty three million.”

“But talking on timing, I do think what this is also showing is that the euphoria and the unquestioned money spigot for AI is over.”

“OpenAI starts paying Corweave in October, twenty-twenty-five, just as Corweave's second loan, DDT-L-II, starts requiring them to pay probably more than OpenAI will be paying them.”

“OpenAI is contracting Google for Cloud Compute. Google is contracting CoreWeave to serve that compute.”

“CoreWeave will probably raise another ten billion dollars by selling another share sale.”

“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.”

“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…”

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

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

“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.”

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

“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…”

“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…”

“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…”

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

“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…”

“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…”

“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.”

“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…”

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

“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…”

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

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

“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.”

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

“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.”

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

“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…”

“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…”

“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.”

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

“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 …”

“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.”