Now, CoreWeave (CRWV +8.29%)… a rather peculiar name, isn’t it? It shot upwards today, like a beanstalk determined to poke a hole in the clouds, gaining a good 9.1% before settling down a bit. By midday, it was still up a respectable 8.1%. A most energetic little stock, wouldn’t you say?
This isn’t just any old cloud business, mind you. CoreWeave specializes in the ‘neocloud’ – a fancy term for stuffing colossal amounts of brainy chips into boxes and letting clever machines do the thinking. And today, they announced a deal that’s got the market buzzing like a hive of particularly industrious bees.
A Cloudy Outlook, Indeed
They’ve struck a partnership with Perplexity AI, a company building machines that attempt to answer questions. It’s a multi-year arrangement, meaning it’s not a fleeting fancy, but a proper, grown-up commitment. Perplexity will be using CoreWeave’s platform to power its ‘inference workloads’ – which, translated from tech-gobbledygook, means making the machines actually think and solve problems. Scaling that up is a tricky business, like trying to herd particularly slippery eels.
And there’s more! CoreWeave is also rolling out Perplexity’s ‘Enterprise Max’ – the top-of-the-range subscription – across its own workforce. Apparently, this allows employees to search the web, analyze data, and generally be very clever indeed. One wonders if they’ll be using it to devise even more fiendishly clever ways to extract money from unsuspecting investors. A thought.
Mas Hjelm, a fellow at CoreWeave with the rather grand title of VP of Revenue, declared that simply having the raw materials isn’t enough. These machines need ‘best-in-class performance and reliability’ – and a platform ‘designed end-to-end for AI’. He speaks, of course, as though AI were a particularly pampered pet requiring a bespoke, hand-stitched kennel.
CoreWeave, you see, is one of a growing number of these ‘neocloud’ operators. They amass these astonishingly powerful graphics processing units – or GPUs – and rent them out to companies who need a bit of extra brainpower. They’re essentially selling thinking time. Perplexity AI will be running its calculations on Nvidia’s Grace Blackwell GB-200 clusters – a name that sounds suspiciously like a villain from a particularly complicated spy novel.
This isn’t a completely new relationship, mind you. CoreWeave was already powering some of Perplexity’s calculations before, helping them with the tricky business of training and managing these artificial brains.
CoreWeave is currently the largest of these neocloud operators. Revenue jumped a staggering 168% in 2025, reaching $5.1 billion. However, they’re still losing money – $2.81 per share, though that loss improved by 35%. It’s a bit like building a magnificent castle on a foundation of quicksand. The stock is trading at more than 6 times sales, down from a peak of 27. A rather dizzying valuation, wouldn’t you agree?
Now, CoreWeave is a high-risk, high-reward opportunity. A bit like offering a chocolate bar to a grumpy badger. It might be a delightful experience, but it could also end rather badly. Therefore, it should only represent a small part of a balanced portfolio. A tiny sliver, perhaps, to add a little spice to an otherwise sensible collection of investments.
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2026-03-04 20:52