The video highlights CoreWeave’s strong growth prospects and significant backing from Nvidia and Microsoft, with Microsoft accounting for about 62% of its 2024 revenue and Nvidia owning around 6% of shares. It also discusses potential new deals, such as with Google, and emphasizes that CoreWeave’s upcoming quarterly report will be a key indicator of the AI infrastructure sector’s health and future growth.
The video discusses CoreWeave’s upcoming first quarterly report as a publicly traded company, highlighting its impressive recent performance amid a challenging market environment. The company has experienced significant growth, with sales projected to increase by 737% in 2024, according to Deutsche Bank. Analysts also anticipate continued rapid growth in 2025 and 2026, with estimates of 156% and triple-digit growth respectively, reflecting strong investor confidence and market demand.
CoreWeave primarily rents out GPUs as a service, serving the AI and data center markets. The company benefits from substantial backing by industry giants Nvidia and Microsoft. Nvidia owns approximately 6% of CoreWeave’s shares and supplies critical chips for its operations. The close relationship with Nvidia underscores the importance of Nvidia’s processors in powering CoreWeave’s infrastructure and growth trajectory.
The report also hints at potential new business deals, notably with Google, which is reportedly close to renting Nvidia AI servers from CoreWeave. Although not officially confirmed, Google’s logo appears on CoreWeave’s website, suggesting ongoing negotiations. Such deals could further expand CoreWeave’s customer base and reinforce its position in the AI infrastructure ecosystem.
Microsoft’s investment is particularly significant, as it accounts for about 62% of CoreWeave’s projected revenue for 2024. Microsoft is heavily investing in CoreWeave’s GPU infrastructure for Azure, aiming to strengthen its competitive position against cloud providers like AWS and Google Cloud. The company’s future growth and market share will likely depend on how well it can diversify its customer base beyond Microsoft.
Overall, the upcoming earnings report is viewed as a key indicator for the entire AI infrastructure sector. The performance of CoreWeave, along with its relationships with Nvidia and Microsoft, will provide insights into the health of the industry. Investors and analysts will be closely watching for updates on customer diversification, revenue growth, and strategic partnerships that could shape the future of AI cloud services.