Core Company Insights - Nvidia has generated significant cash flow, reaching $77 billion in free cash flow over the last 12 months, driven by soaring demand for its GPUs amid the AI boom [1] - Nvidia has increased its investment in CoreWeave to $2 billion, now owning 11.5% of the company, which has positively impacted CoreWeave's stock price [1][2] CoreWeave's Business Model - CoreWeave specializes in AI-focused data centers, renting them to major tech companies like Microsoft and Meta, benefiting from its close relationship with Nvidia [2][4] - The partnership with Nvidia allows CoreWeave access to advanced GPU technology and infrastructure, enhancing its service capabilities [4] Financial Backing and Growth Plans - Nvidia is committed to supporting CoreWeave's expansion, with an obligation to cover any unused capacity up to $6.3 billion until April 2032 [5] - CoreWeave plans to utilize the $2 billion from Nvidia to accelerate the construction of 5 gigawatts of AI data centers by 2030, although the total costs will exceed this amount [6] Debt and Financial Challenges - CoreWeave has a substantial backlog of contracts valued at $55.6 billion, which helps secure financing from lenders due to its relationship with Nvidia [7] - However, the company faces significant interest expenses, totaling $841.4 million in the first nine months of 2025, which is four times higher than the previous year, impacting profitability [8] - Operating income for CoreWeave has decreased to $43.6 million in the same period, down from $211.7 million, indicating challenges in the economics of its data center operations [8]