My opinion on CRWV
Even though the stock market hasn't been particularly favorable over the past few weeks, I still believe CoreWeave has very strong long-term potential.
- Countries around the world are racing to become independent in AI capabilities. And AI means compute. CoreWeave is a US-based company operating in what remains the world's leading economic power. It seems likely that governments and public institutions will continue investing heavily in domestic AI infrastructure.
- Providing high-performance computing resources to public institutions and researchers is another major advantage. As someone working in robotics and AI research, I see firsthand how valuable it is to access massive computational power without dealing with the cost, maintenance, and constraints of owning the hardware.
- The world is becoming increasingly digital, and the AI boom is still in its early stages. Many of the breakthroughs we see today in robotics, autonomous systems, and large-scale AI models are only possible thanks to enormous amounts of compute. Training a humanoid robot to perform tasks as simple as standing up or walking can require tens of thousands of GPU hours.
CoreWeave's debt is undeniably one of the biggest risks in the investment case. However, building AI infrastructure requires enormous upfront capital expenditure, and management has chosen to prioritize scale and market share during what could be the early stages of an unprecedented compute cycle. The question for investors is whether future demand growth will be sufficient to justify today's leverage.
As long as the GPU shortage persists, companies that already own and operate large-scale GPU clusters, such as CoreWeave, may benefit from stronger pricing power and higher barriers to entry. Let's see what the future is about