CoreWeave

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• neutral fact_claim Bill Gurley

  Now, you're assuming a three-to-one debt to equity, which I guess is something similar to what CoreWeave's done. Equinix has, over the years, run closer to one-to-one. And so that would be assuming a substantial amount of risk.

• neutral assessment Unattributed

  there's a lot of talk that we're going to see a CoreWeave filing and I'm, I'm just excited to see the numbers and to piece together more of the information.

• bullish assessment Unattributed

  But we're also seeing companies, like one of the things that really impressed me about CoreWeave, we had a slide on this. I can't remember what the number is. People are starting to understand how public market thinks. And I do think they execute it incredibly well on the timetable in terms of how they release information, how they explain the business model.

• bullish assessment Unattributed

  And then also I give Corey a tremendous amount of credit of just entering the market as a pure play, had difficulty raising capitals. None of us ever believed there's no IP. You're just buying GPUs and reselling them just by being in market and being focused, right? Started to build that relationship with NVIDIA and now it's punching way above its weight.

• bullish assessment Unattributed

  But to me, my other takeaway looking at this, and I was thinking about CoreWeave that recently went public. That you guys are big shareholders in. We are, and big fans of the management team. And I think a lot of skepticism around that business and that business model. But at the end of the day, being an AI pure play, there's very few in the public market, right? And so, you know, I look at this list. There's amazing companies on this list. But a lot of them might have legacy businesses or other

• bearish criticism Unattributed

  One of the more peculiar of all the deals is, and this was disclosed in a CoreWeave filing, was NVIDIA has promised to buy any of Core Weave's service availability that they can't sell to anyone else. That is very unusual. That's not the same as making an investment. That could easily help CoreWeave with their debtors and getting more debt financing. But it also means, as an investor, we don't know what's going on with real demand for CoreWeave because we probably won't be told if they start mov

• bullish fact_claim Brannin McBee

  we're building at, I think it's 28 data centers this year across North America. We're one of the largest operators of this infrastructure in the world. And we are unable to keep up with demand. And we really don't see that subsiding for years to come.

• bullish endorsement Unattributed

  So to summarize, huge market, tons of capital, cool corporate backing, and even has an end with the Venture Capital Group. This is CoreWeave. I love it.

• bullish prediction Unattributed

  Elsewhere, a CoreWeave backer, Magnetar Capital, has put together a new AI fund that is tied to CoreWeave's offerings. That's super cool and should help CoreWeave have access to the next generation, at least in part, of gen AI startups that want to use its compute power.

• bullish assessment Unattributed

  Having Cisco on board could actually really help CoreWeave in more ways than just providing some funds, perhaps. Cisco makes a lot of networking hardware, and I presume that the company is going to need a lot of it.

• bullish fact_claim Unattributed

  CoreWeave, founded back in 2017, capital raised to date. It's a little bit hard to nail down because there's equity and there's debt and there's secondaries, but let's say 12, 12 or $13 billion. And of that, at least a billion dollars is equity and there's at least $10 billion worth of debt.

• bullish assessment Unattributed

  let's talk about CoreWeave, a company that I think embodies the Neo Cloud approach and also has raised more money than God.

• neutral fact_claim David Friedberg

  Now I do agree that core weave and Lambda and the other GPU clouds that are, you know, borrowing up to 11 billion, as the FT said are sending material money to NVIDIA. But NVIDIA is not underwriting the debt in question. So that's actually not a round tripping concern.

• bearish criticism Unattributed

  people are giving loans to companies like CoreWeave, a Neos cloud provider. And so this FT story was talking about just billions and billions of dollars in loans being given by private equity firms to companies that are going public. And then also Nvidia is investing in those companies while those companies are buying from them. And that is called round-tripping.

• neutral fact_claim Unattributed

  So CoreWeave, the reason why of the GPU clouds, Jason, this one was, I think, the pre-IPO one to put in.

• neutral assessment Unattributed

  Yeah, just looking at these, CoreWeave, if people don't know, that's like what they call a neocloud, right? A new cloud made of GPUs. They really got lucky to have bought a bunch of these H100s early. There's a bunch of financing uniqueness to this company. I'll just put it that way.

• neutral fact_claim Unattributed

  core weave reporting kind of came out over the weekend that the listing was coming i think bloomberg reported they're looking at like a 35 possible billion dollar valuation might raise for billy

• bullish fact_claim Jason Calacanis

  but i just want to say that core weave's revenue grew from a little bit under 16 million in 2022 to nearly 230 million in 2023 oh my god more than yeah exactly yeah more than 1.9 billion last year

• neutral assessment Jason Calacanis

  it's a pretty interesting company you ever open an s1 and not know what you're going to see because that's that's how this is like a box of chocolates you never know what you're going to get

• neutral fact_claim Alex Wilhelm

  i want to talk just for a minute about core weave filing to go public jason we've been talking about neo clouds these gpu hyperscalers that are buying up you know billions of dollars worth of gear

• mixed assessment Unattributed

  We'll see if CoreWeave is one of them, or if CoreWeave, frankly, is a financial instrument with good timing that was packaged in a really good way, but it's a commodity business. I don't think it's a commodity business. I think they provide a very unique service, but it could become commodified.

• bullish endorsement Unattributed

  So it's still possible to have a consumer hit big enough to whack even the largest clusters today. So I remain a bull, but that's core.

• bullish endorsement Unattributed

  But the company did raise something like $1.7 billion if the green shoe comes in. So the raise will kick away at the debt. That's very important and good for them. It is a more than $20 billion valuation. We'll sort out the actual number in time. But like, it's a Decacorn debut, right? We should give it points.

• bearish assessment Unattributed

  This company has a huge amount of debt. They have a huge amount of servers. And yeah, they went public. Thank goodness, but probably one of the worst days to go public and, you know, kind of like a lot of bad news before this went public.

• bearish assessment Unattributed

  And the company has opened at roughly $39.50 off about a point and a half. Not a stellar start, Jason, but there for everyone on the live stream.

• bearish assessment Unattributed

  Priced at $40 per share underneath the $47 to $55 per share range, a little bit weak there.

• mixed assessment Unattributed

  the interesting thing here about core weave too is that was one that we were talking so much before the ipo about the skepticism around it

• bullish fact_claim Unattributed

  it's at 163 to share so nearly 4x its ipo price

• bullish assessment Unattributed

  if you bought core weave uh at its debut you're a very happy man today

• bullish fact_claim Unattributed

  core weave that debuted at 40 dollars per share it is worth strap in folks 156.60 per share today

• neutral fact_claim Unattributed

  if you were to start the company and buy a billion dollars in servers you can't claim it's under 50 million so this wouldn't work for you know xai or core weave

• bullish endorsement Chamath Palihapitiya

  circle chime e toro um and uh core weave those all have really good stories either crypto with new crypto regulation or ai and the ai infrastructure boom uh or fintech which again is related to regulations

• neutral fact_claim Alex

  the biggest financial news this morning in the technology world jason is that core weave is going to buy core scientific core we have of course was an ipo earlier this year we talked about on the show a kind of ad nauseum

• bullish assessment David Friedberg

  seems acceptable i'll be totally honest like really you were okay yeah only because we're building this infrastructure out at such a significant pace and utilization is going up and we're still trying to keep up with uh to our first story the ai bubble all of this infrastructure being built out if it happens every two years i think it's kind of in the bucket of acceptable if you look at energy in california i would lose my energy in the peninsula gosh and you know san mateo palo alto you'd lose

• neutral fact_claim Unattributed

  really if you were to average that out if there's been four of these in what looks like an eight-year period maybe my once every six months yeah i was basing my once every six months across all clouds so it seems like they're having you know a major network outage every two years at amazon that to me

• bearish criticism Unattributed

  why hasn't amazon managed to fully detangle its regions from one another to prevent one prop one area having a problem impacting the rest of the world but doesn't seem to be the case and this has happened in 17 20 and 21 as well according to producer claude so something to keep in mind for people building so it happens

• mixed assessment David Friedberg

  if your service is tied to one cloud that's no bueno just a good reminder for people i would say early stage startups shouldn't waste the time and money on this they should have backups but you know it is a lot to be multi-cloud you need to have a team doing that

• neutral fact_claim Unattributed

  aws went down and it's still going down jason a really big problem in the u.s east one region of the cloud giant this brought down companies including coinbase and robinhood snap banks in the uk and also signal

• bearish criticism Chamath Palihapitiya

  one of these data center projects will go belly up or one of these data center projects will um have their valuation just get walloped so there are you know like there's a core weave right and so let's say core weave um has a lot of debt and they're buying a lot of um uh capacity and they're building a bunch of projects there might come a point where they say you know what um we have to pay back and we've got loans and we've got payments to make yeah we're going to pause those two places where w

• bearish assessment Chamath Palihapitiya

  so an easy way to do this is are they doing it to make quick money if they're doing it to make quick money i would put them in that finance genre as opposed to capital allocators so uh when you have masayoshi son come in or you have um you know japan came into hollywood during a period of time when people come in with big chip sacks that's a sign of a top when they start uh doing this and when finance people just do these kind of deals and on the margins we are starting to see uh people come in

• bearish criticism Alex Wilhelm

  open ai's one trillion dollars spend to be a little bit incredible compared to its revenue

• neutral fact_claim Unattributed

  there's a company called core weave, which provides cloud infrastructure for AI training, it secured a $2.3 billion investment in the form of a loan

• bullish assessment Gavin Baker

  core weave bought weights and biases, which I think is a really interesting acquisition for them that kind of, kind of further differentiates them and maybe decommodifies them a little bit.

• bullish endorsement Unattributed

  And it's great to see a competitor to the existing three or four clouds that are out there. And it's great to see a company go public.

• bullish endorsement Unattributed

  I think it's a good company. I would, I would second. I mean, I think it's a, and it's a great business. And I think they deserve to be successful.

• bullish assessment Unattributed

  it may not be the commodity that everyone thinks it is, and it may turn out that it's much harder to do

• bullish assessment Gavin Baker

  I do think core weave runs these big GPU clusters as well as anyone. And there aren't that many people on planet earth who can run them well. And, you know, it's kind of easy, you can just look at the NPV of their contracts and the asset value.

• neutral fact_claim Gavin Baker

  NVIDIA, by giving kind of like a standard reference design, which someone like CoreWeave bought to CoreWeave, you got GPUs in the market a lot faster.

• bullish assessment Unattributed

  they're feeding information back into us that is letting us know what the next product we need to build is or where they need help scaling or what type of compute they need.

• bullish fact_claim Unattributed

  as you do this and as you show the lenders how this financing tool and how this financing mechanism works, what they do is they continue to lend you money at progressively lower levels.

• bullish assessment Unattributed

  by entering into these long term contracts and entering into contracts with counterparties that have large balance sheets, you are or we are, protecting ourselves and our lenders.

• bullish assessment Unattributed

  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.

• bullish prediction Unattributed

  And so you're seeing a company that is driving its cost of capital down towards where the hyperscalers borrow, which will enable us to be able to be competitive with them over time.

• bullish fact_claim Unattributed

  And so when you think about our cost of capital over the last two years, we have dropped our cost of capital by 600 basis points.

• bullish assessment Unattributed

  it is extraordinarily profitable

• bullish prediction Unattributed

  I fully expect this infrastructure to last in excess of six years

• bullish fact_claim Unattributed

  the economics in this box are such that within two and a half years of a five year deal, we have paid for everything.

• bullish assessment Unattributed

  it is an incredibly well-structured, time-tested, pressure-tested vehicle to be able to borrow money against client paper and all of the other collateral around the deal

• bullish assessment Unattributed

  CoreWeave has really been the innovator around a lot of the financing engines that have come to bear on this.

• bullish assessment Unattributed

  the fact that we are attracting competitors, the means that the business is healthy.

• bullish fact_claim Unattributed

  new companies that have come into existence or existing companies that have integrated new models into their workflow that are able to use the amperes. And so they keep buying any GPUs that we have available.

• bullish criticism Unattributed

  the concept that a GPU is no longer relevant or commercially viable after 16 more, 18 months or two years. Yeah, that's farcical.

• bullish fact_claim Unattributed

  when, when we buy infrastructure, we're a success-based company, right? We're a small company on a relative basis compared to the enormous companies that we're competing with. And so they come, our clients come into us and they buy compute for five years, for six years. Our average contract is five years. So any commentary by anyone either inside or outside of the industry that this stuff becomes obsolete in 16 months or whatever nonsense they're spewing, it, it doesn't, it doesn't in any way ma

• bullish assessment Unattributed

  And that's actually where you're, you're, you have the opportunity to really drive value outside of the model itself, but into the real world. And that's really exciting for us. That's what I like to watch in terms of gauging the health.

• bullish assessment Unattributed

  I always think of inference as the monetization of the investment in artificial intelligence. So when, when, when we see our compute being used, uh, uh, to stand up the massive scale of inference that's hitting our compute every day.

• bullish fact_claim Unattributed

  we are, we are the tip of the spear in bringing, um, the new architecture, uh, out of Nvidia.

• bullish fact_claim Unattributed

  First ones with the GB, uh, 200s, and now you've got the GB 300s.

• bullish fact_claim Unattributed

  we were the first ones to bring the H 100s at scale, we were the first ones to bring the H 200s at scale.

• bullish fact_claim Michael Intrader

  buying those initial GPUs was the tuition we paid to learn how to run this business.

• bullish assessment Michael Intrader

  We don't do everything. We really focus on one use case.

• bullish fact_claim Michael Intrader

  We kind of live above the NVIDIA GPUs, but below the models. And everything in there, all the software, the integration of software and operations and observability and all the things that you need to be able to build a cloud that's purpose built for this one specific use case.

• bullish assessment Michael Intrader

  computing decommoditizes at scale, right? Like when, you know, anybody can run a GPU, but can you run a cluster that's large enough to train a model that can change the world? And that's a different question. And so we really began to think about like, how do you go about scaling up your delivery of this compute to clients, larger and larger clients?

VentureSignalScore 79.2/100 for coreweave, composed from 2 of 5 components (enterprise formula), discounted ×0.82 for 40% signal coverage