Jensen Huang Endorses CoreWeave: Financial Condition Continues to Improve, No Need for Nvidia to Provide Guarantees

October 15: Nvidia CEO Jensen Huang said that the financial condition of data center operator CoreWeave is improving. Nvidia is CoreWeave's computing equipment supplier. Speaking at an event in Stockholm, Huang said: "CoreWeave's strength is increasing every day." He believes there is no need for Nvidia to provide financial guarantees for CoreWeave. "I am optimistic. In fact, their cost of capital is declining." Previously, confidence in CoreWeave in the credit market had deteriorated, with views that its default risk was rising, and Huang is trying to restore market confidence in the company.

CoreWeave is an important case for testing the sustainability of the business models of emerging artificial intelligence infrastructure companies. Such companies have emerged to meet what companies like Nvidia describe as almost unlimited growth in artificial intelligence computing power demand. Companies like CoreWeave have borrowed heavily with the support of suppliers including Nvidia, raising market concerns that circular financing is creating false demand.