If you gaze too long into CoreWeave, CoreWeave gazes back at you.

https://archive.is/wwGnR

Some surprisingly sound reporting from The Verge's usually unhinged crazy Elizabeth Lopatto about deeply dubious datacenter holding company CoreWeave.

>But as I began to look more closely at the company, I began feeling like I'd accidentally stumbled on an eldritch horror. CoreWeave is saddled with massive debt and, except in the absolute best-case scenario of fast AI adoption, has no obvious path toward profitability. There are some eyebrow-raising accounting choices. And then, naturally, there are the huge insider sales of CoreWeave stock.

Yes, naturally there are those.

Wait, what?

>After I unfocused my eyes a little, I realized CoreWeave did make a horrible kind of sense: It's a tool to hedge other companies' risks and juice their profits. It's taking on the risk and the costs of building data centers that bigger tech companies can then rent while they build their own data centers which may very well wind up competing with CoreWeave. What's more, it's part of a whole stable of companies that are propping up demand for the behemoth of the AI boom: Nvidia.

The usual names pop up in the list of investors in CoreWeave. Nvidia is a major investor and is selling the company billions of dollars worth of GPUs, which CoreWeave then provides access to for customers like OpenAI and Microsoft, which are also major investors.

It also has billions in outstanding loans at variable interest rates.

It's not a bubble.