Nvidia & CoreWeave: Just More Spending, Honestly

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So, Nvidia – the company that makes the things that make the AI things go – they’ve put two billion dollars into CoreWeave. CoreWeave, apparently, builds these… factories. AI factories. It’s like they’re trying to make it sound important. They rent out the computing power to companies like OpenAI and Meta. You know, the ones that are already spending enough money to solve world hunger, but are too busy making chatbots. It’s just… more spending. That’s all it is.

And everyone’s acting like this is some stroke of genius. Like Nvidia suddenly discovered the wheel. They already make the chips. These hyperscalers – that’s what they call them, “hyperscalers” – they’re still buying chips from Nvidia. CoreWeave is just… a middleman. A very expensive middleman. It’s like ordering a coffee through an assistant. You still pay for the coffee, plus the assistant’s time. What’s the point?

It’s About Control, Apparently

They say this gives Nvidia “direct exposure” to CoreWeave’s growth. What does that even mean? It means they own a slightly bigger piece of a company that’s already making money off their products. It’s like… I don’t know. It’s like if I started a business reselling my own sandwiches. Would that be considered a brilliant strategic move? I think not.

CoreWeave’s data centers are “designed specifically for AI.” Oh, well that’s comforting. As if regular data centers weren’t good enough. They’re just trying to justify the extra cost. And of course, because CoreWeave uses Nvidia GPUs, it “protects Nvidia’s AI market share.” It’s circular logic! They’re investing in a company that buys their products to ensure they continue to buy their products. It’s… exhausting.

Everyone’s talking about a “technological arms race.” An arms race! Over data centers? It’s ridiculous. It’s just a lot of money being thrown at a problem that doesn’t really exist. And CoreWeave’s revenue is supposed to “skyrocket.” Everything “skyrockets” these days. It’s just marketing hype.

Rubin and the Future of… More Spending

Then there’s this Rubin chip. Apparently, it’s the next big thing. And CoreWeave is building its data centers with “future hardware” in mind. So, they’re building things to accommodate things that haven’t even been fully developed yet. It’s like decorating a nursery for a child you haven’t conceived. It’s premature. And probably expensive.

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They say AI is still in its “early innings.” Of course it is. Everything is in the “early innings” when there’s a lot of money to be made. The U.S. government is launching a “Genesis Mission.” A mission! To build out AI. It’s like they’re trying to colonize a new planet. It’s all so… grandiose.

Is It a Game Changer? Please.

A “game changer”? No. It’s not a game changer. It’s a relatively small investment in a company that’s already benefiting from Nvidia’s products. Nvidia is still selling chips directly to the hyperscalers. They’re just adding another layer of complexity. It’s like adding a toll booth to a highway that was already free.

Investors should “applaud” Nvidia for “proactively making moves.” Applaud? For spending money? That’s what companies do. They spend money. It’s not exactly a heroic act. But sure, go ahead and applaud. It’s not like you have anything better to do. It will probably help Nvidia grow throughout 2026 and beyond. Because that’s what always happens. More spending, more growth. It’s the cycle of life.

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2026-01-29 17:13