CoreWeave: A Most Curious Investment

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Now, listen closely, because this is a story about numbers, and servers, and a rather clever little company called CoreWeave. Demand for these ‘AI data centers’ – imagine enormous rooms filled with blinking lights and humming machines – is, quite simply, monstrous. The big fellows – the Microsofts and Metas of this world – are gobbling up capacity as if it were licorice. And CoreWeave, you see, is the sweet shop.

They rent out space in these digital caverns to the giants, and also to a rather brainy bunch called OpenAI – the folks who make computers talk, if you can imagine such a thing. The real muscle behind it all, the very whizz-bangery, comes from something called ‘GPUs’ – graphics processing units – made by a company called Nvidia. But CoreWeave isn’t just a customer, oh no. They’ve become… well, let’s just say Nvidia has taken a rather substantial liking to them.

A Most Peculiar Partnership

On January 26th, a curious agreement was struck. Nvidia, already committed to buying up any spare capacity CoreWeave had until 2032 (a truly enormous amount, mind you), decided to throw another $2 billion into the pot. This isn’t charity, you understand. It’s a calculated move, like a fox investing in the hen house – but with the hen house knowing exactly what’s going on and benefiting nicely.

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The plan, so the press release proclaims, is to build ‘AI factories’ – enormous, humming behemoths – capable of powering this artificial intelligence craze. CoreWeave will continue to stuff these factories with Nvidia’s clever bits and bobs, including something called ‘Vera Rubin’ – a name that sounds suspiciously like a villain from a spy novel.

But it’s not just the hardware. Nvidia’s money will also help CoreWeave secure land – precious, valuable land – and, crucially, the electricity to power all this digital wizardry. The company intends to use the funds for research, improving its workforce, and generally expanding its operations. Rest assured, they aren’t simply buying Nvidia’s hardware with Nvidia’s money – that would be a rather circular, and frankly, silly arrangement.

Even better, Nvidia is lending a hand with the ‘software suite’ – the digital plumbing that makes everything work. This will allow CoreWeave to become a ‘full-stack AI solutions company’ – a fancy way of saying they’ll be able to not only rent out the machines but also help customers build and deploy their own artificial brains.

The most important thing, however, is that this investment should allow CoreWeave to convert its enormous backlog – a staggering $56 billion worth of orders – into actual, honest-to-goodness revenue. That’s a mountain of contracts from Meta, OpenAI, and others. In 2025, they managed about $5.1 billion in revenue, with 590 megawatts of data center capacity. This injection of cash should propel them toward their goal of 5,000 megawatts by the end of the decade.

A Rather Clever Investment, Indeed

With that backlog and Nvidia’s backing, CoreWeave is poised for a rather phenomenal growth spurt. Analysts are predicting revenue will quadruple in just two years. This explains why the stock is beginning to attract attention.

If CoreWeave does manage to generate $20 billion in revenue by 2027 and trades at a multiple of 5.5 times sales (roughly in line with the Nasdaq Composite index), its market capitalization would nearly double to $110 billion. That suggests Nvidia has made a rather shrewd investment. And perhaps, just perhaps, retail investors should consider following suit before this curious little company skyrockets.

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2026-02-01 17:32