Nvidia CEO Jensen Huang said CoreWeave’s financial condition is improving and that Nvidia does not need to provide financial guarantees for the data center operator. Speaking at an event in Stockholm, Huang said CoreWeave is getting stronger every day and added that its cost of capital is falling.
His remarks come after confidence in CoreWeave weakened in credit markets, where investors had grown more concerned about the company’s rising default risk. Huang’s comments appear aimed at restoring confidence in the company, which has become a closely watched case for the sustainability of emerging AI infrastructure business models.
CoreWeave is part of a group of companies built to serve what Nvidia and others describe as nearly unlimited growth in AI computing demand. But the heavy borrowing by companies such as CoreWeave, with support from suppliers including Nvidia, has also raised concerns in the market that circular financing could be creating artificial demand.
Nvidia CEO Jensen Huang said CoreWeave, the data center operator that buys computing equipment from Nvidia, is seeing its financial position improve.
Speaking at an event in Stockholm, Huang said, 「CoreWeave gets stronger every day.」 He also said Nvidia does not need to provide financial guarantees for the company.
「I’m optimistic. In fact, their cost of capital is coming down,」 Huang said.
The comments came after confidence in CoreWeave deteriorated in credit markets, where investors had become more concerned about the company’s default risk. Huang is trying to rebuild market confidence in the company.
CoreWeave has become an important test case for whether the business model of emerging artificial intelligence infrastructure companies can hold up. These companies were created to meet what Nvidia and others describe as nearly unlimited growth in demand for AI computing power.
Companies including CoreWeave have borrowed heavily with support from suppliers such as Nvidia, raising concerns that circular financing could be creating artificial demand.
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