We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
How CoreWeave Turned a Crypto Crash into an AI Empire
“You adapt, evolve, compete, or die.” ~ Paul Tudor Jones
CoreWeave: Right Place at the Right Time
Founded by three former commodities traders in New Jersey in 2017, ‘Atlantic Crypto’ first opened up shop as a crypto mining company, leveraging its graphic processing units (GPUs) to earn crypto rewards. At the time, crypto was becoming mainstream, Bitcoin was on its way to ~20x gains in two years, and business was good. However, in 2018, fate intervened when the crypto markets crashed and Bitcoin fell 80% from its peak.
Image Source: TradingView
“It’s not about the cards you’re dealt, but how you play the hand.” ~ Randy Pausch
CoreWeave Pivots from Crypto Mining to AI
While it didn’t seem like it at the time, the crypto crash would ultimately prove to be the best possible outcome for the company. Instead of fighting a brutal crypto bear market, the Atlantic Crypto team pivoted, sensing the incoming AI revolution. In 2019, the company renamed itself CoreWeave ((CRWV - Free Report) ). What happened next was an incredible stroke of luck, coupled with foresight.
CoreWeave had exactly the necessary ingredients to pivot into an AI juggernaut, including multiple data centers and the hard-to-attain and highly coveted Nvidia ((NVDA - Free Report) ) H100 chips. Between a unique arrangement with Nvidia and its existing data center infrastructure, CoreWeave began providing cloud computing infrastructure necessary to train large language models (LLMs) to big tech companie,s just as the AI race heated up and billions in CAPEX would be spent. Meanwhile, as an early mover, CoreWeave has optimized its platform to meet specialized AI needs, offering industry-best performance at a fraction of the price.
CoreWeave: Deals, Deals, Deals
CoreWeave’s business is accelerating at a lightning-fast rate. Over the past few weeks, CoreWeave has landed three multi-billion-dollar deals, including:
· A $6.5 billion deal expansion with OpenAI to provide cloud infrastructure.
· A $6.5 billion “backstop” deal with Nvidia. In the deal, Nvidia will purchase any of CoreWeave’s unsold cloud capacity through 2032.
· A $14.2 billion deal to provide Meta Platforms ((META - Free Report) ) access to its Nvidia GB300 server racks and “Blackwell” GPUs.
When put into context, the approximately $27 billion in long-term deals is staggering, considering that CRWV’s market cap is only $67 billion.
CoreWeave Soars After Meta Deal
Tuesday, CoreWeave shares soared more than 10%, while intraday volume was on pace for the highest in the recent IPO’s young history. The heavy demand is a sign of heavy institutional accumulation as shares emerge from a double-bottom base structure.
Image Source: TradingView
Bottom Line
With billions in new, long-term deals from tech giants like OpenAI and Meta, CoreWeave has validated its strategy of being an optimized, dedicated player in a market hungry for compute power.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
How CoreWeave Turned a Crypto Crash into an AI Empire
“You adapt, evolve, compete, or die.” ~ Paul Tudor Jones
CoreWeave: Right Place at the Right Time
Founded by three former commodities traders in New Jersey in 2017, ‘Atlantic Crypto’ first opened up shop as a crypto mining company, leveraging its graphic processing units (GPUs) to earn crypto rewards. At the time, crypto was becoming mainstream, Bitcoin was on its way to ~20x gains in two years, and business was good. However, in 2018, fate intervened when the crypto markets crashed and Bitcoin fell 80% from its peak.
Image Source: TradingView
“It’s not about the cards you’re dealt, but how you play the hand.” ~ Randy Pausch
CoreWeave Pivots from Crypto Mining to AI
While it didn’t seem like it at the time, the crypto crash would ultimately prove to be the best possible outcome for the company. Instead of fighting a brutal crypto bear market, the Atlantic Crypto team pivoted, sensing the incoming AI revolution. In 2019, the company renamed itself CoreWeave ((CRWV - Free Report) ). What happened next was an incredible stroke of luck, coupled with foresight.
CoreWeave had exactly the necessary ingredients to pivot into an AI juggernaut, including multiple data centers and the hard-to-attain and highly coveted Nvidia ((NVDA - Free Report) ) H100 chips. Between a unique arrangement with Nvidia and its existing data center infrastructure, CoreWeave began providing cloud computing infrastructure necessary to train large language models (LLMs) to big tech companie,s just as the AI race heated up and billions in CAPEX would be spent. Meanwhile, as an early mover, CoreWeave has optimized its platform to meet specialized AI needs, offering industry-best performance at a fraction of the price.
CoreWeave: Deals, Deals, Deals
CoreWeave’s business is accelerating at a lightning-fast rate. Over the past few weeks, CoreWeave has landed three multi-billion-dollar deals, including:
· A $6.5 billion deal expansion with OpenAI to provide cloud infrastructure.
· A $6.5 billion “backstop” deal with Nvidia. In the deal, Nvidia will purchase any of CoreWeave’s unsold cloud capacity through 2032.
· A $14.2 billion deal to provide Meta Platforms ((META - Free Report) ) access to its Nvidia GB300 server racks and “Blackwell” GPUs.
When put into context, the approximately $27 billion in long-term deals is staggering, considering that CRWV’s market cap is only $67 billion.
CoreWeave Soars After Meta Deal
Tuesday, CoreWeave shares soared more than 10%, while intraday volume was on pace for the highest in the recent IPO’s young history. The heavy demand is a sign of heavy institutional accumulation as shares emerge from a double-bottom base structure.
Image Source: TradingView
Bottom Line
With billions in new, long-term deals from tech giants like OpenAI and Meta, CoreWeave has validated its strategy of being an optimized, dedicated player in a market hungry for compute power.