Why Investors Are Excited About CoreWeave

Core Viewpoint - CoreWeave has transformed from a small crypto-mining company to a significant player in AI infrastructure, providing essential computing power for major AI model developers [1] Company Overview - CoreWeave specializes in GPU-based cloud computing tailored for AI workloads, differentiating itself from general-purpose cloud services like AWS and Azure [3][4] - The company’s data centers utilize the latest Nvidia GPUs and advanced cooling systems to support extensive AI model training [4] Business Model - CoreWeave operates on a multiyear, take-or-pay contract model, ensuring revenue visibility and reducing volatility associated with tech spending cycles [5] - As of the end of 2024, CoreWeave reported $15.1 billion in remaining performance obligations, indicating strong future revenue potential [5] Market Dynamics - The AI sector has initiated a compute supercycle, with large models requiring extensive GPU resources for training and inference [7] - The global data center GPU market is projected to grow from $14.5 billion in 2024 to $190.1 billion by 2033, with a compound annual growth rate of 36% from 2025 to 2033 [8]