Benzinga·2026-01-12 08:51Core Viewpoint - CoreWeave Inc. CEO Michael Intrator has rejected allegations of "circular financing" with Nvidia, calling the narrative "ridiculous" and mathematically unsound [1][2] Financial Overview - Nvidia has invested approximately $300 million in CoreWeave, which has raised over $25 billion in total capital and holds a valuation of $42 billion [3][4] - CoreWeave shares have fallen by 39.46% in the last six months but increased by 100.35% over the last year, with an 8.41% rise year-to-date in 2026 [9] Business Strategy - CoreWeave employs a strategy using special purpose vehicles, or "boxes," to manage risk, ensuring revenue from investment-grade contracts flows into a restricted account [5][6] - This structure prioritizes paying off operating expenses and lenders before distributing profits to CoreWeave, which is defended as a low-risk approach to infrastructure building [6] Market Dynamics - The relationship between CoreWeave and Nvidia is characterized by a "systemically imbalanced market" where demand for compute resources significantly exceeds supply [4] - CoreWeave has renewed contracts for older Nvidia A100 chips at 95% of their original value, challenging the notion that AI hardware depreciates rapidly [7][8]