Huge news dropped! CoreWeave ($CRWV) just signed a $6.3B deal with Nvidia for cloud capacity, with Nvidia guaranteeing to buy any unsold compute. Stock popped 8% post-IPO.
Why it matters: CoreWeave’s locked in as Nvidia’s AI cloud partner, with a safety net against demand drops. AI infra spend could hit $200B by 2027- is $CRWV the next big AI play?
Bull: GPU cloud demand = rocket fuel for growth.
Bear: AI bubble pops, overcapacity risk?
What’s your move?
- Buying CRWV now or waiting?
- Nvidia’s grip: Bullish or risky?
- Top AI pick: CRWV, NVDA, or sleeper like SMCI?
Drop your thoughts- let’s talk!
CoreWeave Scores $6.3B Nvidia Deal – Is This the AI Stock to Moon?
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CoreWeave’s $6.3 Billion NVIDIA Deal: The Story Behind the Stock Surge
On September 15, 2025, CoreWeave (CRWV) disclosed a $6.3 billion agreement with NVIDIA, causing its stock to surge. However, the story reveals both significant opportunities and serious red flags for investors.
The Deal Details
The agreement, signed on September 9, 2025, requires NVIDIA to purchase any of CoreWeave’s unsold cloud computing capacity through April 2032. This provides a crucial revenue safety net for CoreWeave. The relationship is deep, as NVIDIA already owns a 6.6% stake in the company and is its primary supplier of GPUs.
Following the announcement, CoreWeave shares jumped 8% to $120.91, pushing its market cap to approximately $62 billion. The stock has gained over 200% since its March 2025 IPO.
The Bull Case: A Validated Business Model
Supporters see the NVIDIA deal as a validation of CoreWeave’s strategy. It secures revenue, addresses concerns about filling its data center capacity, and positions the company as a critical AI infrastructure provider. This is backed by explosive growth, with Q1 2025 revenue soaring over 420% year-over-year to $981.6 million.
The Bear Case: A Scathing Short Report
On the same day as the NVIDIA announcement, investment firm Kerrisdale Capital disclosed a short position and released a report calling CoreWeave “the poster child of the AI infrastructure bubble.” Kerrisdale set a price target of $10 per share, implying a 90% downside.
Key criticisms include:
Extreme Customer Concentration: Microsoft accounts for 70% of CoreWeave’s revenue and recently passed on an expansion opportunity.
Unsustainable Financials: The company is burning through cash, expected to burn $19 billion in 2025 alone, with total debt projected to exceed $40 billion by 2028. It currently isn’t generating enough income to cover its interest payments.
No Competitive Advantage: Kerrisdale argues CoreWeave is simply a commodity GPU rental business with no proprietary technology, facing competition from hyperscalers building their own infrastructure.
Conclusion: Growth vs. Fundamentals
CoreWeave represents a classic investment dilemma: massive growth and a strategic partnership with NVIDIA are pitted against questionable fundamentals, including an extreme debt load, significant cash burn, and high customer concentration risk.
The stock surged because investors focused on the NVIDIA partnership and the ongoing AI hype, which temporarily overshadowed the fundamental concerns raised by Kerrisdale. The $6.3 billion deal provides revenue visibility but doesn’t solve the underlying challenges of its capital-intensive business model. The current valuation may be severely disconnected from the company’s financial reality.