He said this in an interview with CNBC’s Jim Cramer on Wednesday. coreweave CEO Michael Intrater dismissed concerns that his company’s deals with other artificial intelligence giants were circular investments, calling such talk “fundamentally flawed.”
“The reality of the situation is that very large, very important technology companies around the world, like Meta, Microsoft, you know, Amazon, Google, they’re buying infrastructure to serve their customers,” Intrater said. “So the world’s largest technology companies are buying this infrastructure because there’s a demand for it. There’s nothing circular about it.”
CoreWeave, which sells cloud infrastructure for AI, went public in March. This is the largest US tech IPO since 2021, successfully raising $1.5 billion in stock sales. Since then, the stock has soared as investor appetite for AI and data centers continues to grow. It is currently up over 200% since its debut on Wall Street.
CoreWeave is a major supplier of OpenAI and late last month announced a $6.5 billion expansion of its current contract with the ChatGPT maker, bringing the total contract with the company to $22.4 billion. Just days later, CoreWeave signed a $14.2 billion deal meta. In early September, the company also disclosed orders worth at least $6.3 billion with chipmakers. Nvidiahe is one of its major supporters. Nvidia is already a major supplier to CoreWeave, and a recent agreement states that Nvidia is “obligated to purchase any remaining unsold capacity” through April 2032.
Some on Wall Street are concerned that these deals, and many others across Big Tech, are too cyclical, meaning money goes back and forth from one company to another.
But Intrater insisted the deal meant “building basic infrastructure.” When infrastructure is built on such a large scale, “it’s not uncommon to see partnerships emerge as people try to provide infrastructure to consumers,” he said, adding that this dynamic occurs in other markets as well.
“This narrative around circular investing, you know, is a thing of the moment, but it will pass,” he said. “Because the fundamental drivers of the market are huge.”
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