CoreWeave: A Calculated Gamble

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Right, let’s talk CoreWeave. Because frankly, the 40% jump at the start of 2026 isn’t a surprise. It’s… predictable. Like that awkward moment when you realize you’ve accidentally liked your ex’s holiday photos from three years ago. You knew you shouldn’t have scrolled. But here we are. Shares up, everyone panicking about whether it’s sustainable. Honestly? It’s less about sustainability and more about how quickly they can shovel money into this thing before someone else does. I’ve been watching them, and let’s just say my interest isn’t entirely altruistic.

Is it a fluke? Could be. Everything is a potential disaster, isn’t it? But I’m leaning towards… intrigued. Dangerously intrigued. And when I’m intrigued, I tend to poke things with a very large stick. Which, in this case, means a significant investment.

CoreWeave: The AI Life Support System

Look, the big boys – Alphabet, Microsoft – they’re building their own AI empires, sure. But they also hate spending money on things that don’t feel like core competencies. It’s like me trying to assemble flat-pack furniture. I can do it, eventually. But the emotional cost… astronomical. They want to appear nimble, agile, and definitely not weighed down by… assets. Data centers are assets. Massive, depreciating assets.

CoreWeave is the perfect solution. They build the server farms, cram them full of those ridiculously expensive GPUs, and then rent out the processing power. It’s basically AI cloud computing on steroids. And it’s growing. Fast. Third quarter revenue up 134% year-on-year? That’s not growth; that’s a rocket launch. They’ve got a $55.6 billion backlog. A backlog! It’s like having a lifetime supply of dark chocolate. You know it’s good, but you also know it’s probably going to lead to some regrettable decisions.

The problem? They’re not making any actual profit. Which is… concerning. But also, perfectly acceptable. For now. It’s like running up a huge bar tab, confident you’ll win big at the roulette wheel later. It’s a gamble, and I’m a gambler.

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Spending Like There’s No Tomorrow (Because There Might Not Be)

They’re expanding at all costs. And I mean all costs. It’s exactly what an early-stage company with a potentially world-altering opportunity should be doing. They’re throwing money at the problem, hoping it sticks. It’s gloriously reckless. Most companies do this with software, where the marginal cost of an extra user is practically zero. CoreWeave? They’re dealing with physical hardware. GPUs don’t last forever. They burn out. They need replacing. It’s a constant, expensive cycle.

This is where it gets interesting. They could hit a sweet spot – profitability, sustainable growth, the whole shebang. Or they could end up in a situation where they’re charging exorbitant rates just to stay afloat. At that point, the big boys might decide it’s cheaper to build their own data centers. And then CoreWeave? Well, let’s just say I’ve seen perfectly good companies vanish in a puff of smoke. It’s… unsettling.

So, what’s my prediction? Artificial intelligence is still in its infancy. The build-out is going to continue for years. CoreWeave will likely keep growing, at least for the foreseeable future. The stock will probably keep rising. But long-term success? That depends on profitability. And frankly, we won’t know that for a while. I’m investing anyway. Because sometimes, you just have to lean into the chaos. It’s either that or take up knitting. And frankly, the thought terrifies me.

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2026-01-22 17:22