top of page
Search

1O Things Every Investor Should Know About CoreWeave before buying the stock!

  • Writer: Jeff
    Jeff
  • Aug 17
  • 3 min read


CoreWeave has quickly emerged as one of the most talked-about names in AI cloud computing, attracting big investors like NVIDIA and gaining attention for its rapid growth. For investors, understanding what sets CoreWeave apart is key to seeing its potential in a market racing to power the AI revolution.


ree

1. Explosive Revenue Growth


  • CoreWeave reported $229 million in revenue in 2023, but by 2024 it scaled to nearly $1.9 billion, marking 737% YoY growth.

  • This growth was fueled by unprecedented demand for AI training workloads, especially from enterprises using Nvidia GPUs for generative AI.

  • For investors, such rapid revenue expansion is both promising (strong demand, market leadership) and concerning (can growth sustain, or will comps get tougher in 2025–2026?).


2. AI Supercomputer for Nvidia


  • CoreWeave partnered with Nvidia to deploy a $1.6 billion Plano, Texas AI supercomputer, claimed to be the fastest in the world for AI workloads.

  • This positions CoreWeave not just as a cloud player, but as critical infrastructure for Nvidia’s ecosystem, akin to how AWS was key for Amazon.

  • It also signals Nvidia’s direct reliance on CoreWeave as a partner, which strengthens investor confidence in long-term GPU supply flows.



3. Huge GPU Footprint


  • As of late 2024, CoreWeave ran 32 data centers across the U.S. and Europe, with 250,000+ Nvidia GPUs powering workloads.

  • This GPU inventory includes cutting-edge H100s, H200s, and A100s, which are scarce and highly in demand.

  • Scale matters here: CoreWeave is one of the only clouds offering elastic GPU clusters at scale, giving it a moat against hyperscalers who prioritize CPU-based workloads.


4. Crypto Roots


  • Originally launched as Atlantic Crypto in 2017, the company focused on Ethereum mining.

  • When Ethereum shifted away from proof-of-work and crypto markets collapsed in 2018, the founders pivoted their mining infrastructure into GPU-based cloud compute.

  • This origin story shows resilience and adaptability — turning a failing crypto bet into a $20B+ AI cloud business.


5. Major Reliance on Key Customers


  • In 2024, Microsoft accounted for 62% of CoreWeave’s revenue, and the top two customers combined for 77%.

  • That means a few contracts (Azure and OpenAI included) drive most of the company’s revenue base.

  • For investors, this customer concentration risk is a double-edged sword: it validates demand from big players but leaves CoreWeave vulnerable if Microsoft reduces spend.


6. Strategic and Record Financing


  • In mid-2024, CoreWeave secured a $7.5 billion debt facility (one of the largest ever in cloud infra) backed by Blackstone, Magnetar, and others.

  • It also raised $1.1 billion in equity in May 2024, giving it the liquidity needed to buy more GPUs and build data centers.

  • The debt-heavy model signals confidence in future cash flows, but also increases financial leverage risk if growth slows.




7. Governance & Leadership


  • Founders Michael Intrator (CEO), Brian Venturo, and Brannin McBee structured the company with dual-class shares.

  • Even after selling most of their Class A shares before IPO, they retain over 80% of voting power through Class B stock.

  • This means outside investors have limited say in governance — a common setup in high-growth tech IPOs, but one that raises control concerns.


8. Major Contracts & Infrastructure Scale-Up


  • CoreWeave reportedly has a $4 billion contract with OpenAI, one of the largest in the AI cloud space.

  • In total, it has over $15 billion in performance obligations (signed deals for future capacity), creating a strong demand pipeline.

  • This backlog gives revenue visibility but also locks the company into heavy capex to meet commitments.


9. Rapid Global Expansion


  • CoreWeave announced its European HQ in London in 2024, with plans to invest £1 billion into UK compute infrastructure.

  • Two UK data centers are already in progress, making Europe its first major international expansion market.

  • Expanding abroad is crucial: it helps diversify customer base, reduce U.S. concentration risk, and compete against global hyperscalers like AWS, Azure, and GCP.




10. Aggressive Scaling Strains Margins


  • In Q2 2025, CoreWeave revenue surged 206% YoY to $1.21B, but losses widened to $291M.

  • Capex reached a record $2.9B in a single quarter, primarily for GPU purchases and data center construction.

  • This illustrates the “growth at all costs” model: scaling fast to dominate AI infra, but at the expense of short-term profitability.

  • Nvidia, which owns ~7% of CoreWeave, provides strategic backing — but investors must weigh the risk of overbuilding ahead of demand.



Key Takeaways for Investors


  • Bullish Case → CoreWeave is the fastest-growing AI cloud, tightly linked with Nvidia, and has multi-billion-dollar contracts in place. Early investors may see AWS-style growth.

  • Bearish Case → High customer concentration, massive debt, and widening losses make it vulnerable if AI demand slows or Microsoft reallocates workloads.

  • Neutral View → A high-risk, high-reward growth play, best suited for investors bullish on AI infrastructure demand outpacing traditional cloud.


To view CoreWeave latest analyst ratings & price targets click here





bottom of page