Jensen Huang stands by CoreWeave: Financial condition continues to improve, no need for Nvidia to provide guarantees

On October 15 that NVIDIA CEO Jensen Huang stated that the financial condition of data center operator CoreWeave is improving. NVIDIA serves as the computing equipment supplier for CoreWeave. At an event in Stockholm, Huang stated: “CoreWeave’s strength is growing every day.” He believes NVIDIA does not need to provide financial guarantees for CoreWeave. “I am optimistic. In fact, their cost of capital is declining.” Previously, confidence in the credit market toward CoreWeave had deteriorated amid concerns that its default risk was rising; Huang is now trying to restore market confidence in the company. CoreWeave serves as a crucial test case for assessing the sustainability of emerging AI infrastructure companies’ business models. Such companies emerged to meet what NVIDIA and other firms describe as virtually limitless growth in AI computing demand. CoreWeave and similar enterprises have taken on heavy debt with support from suppliers including NVIDIA, raising market concerns that rollover financing could be fabricating artificial demand. (Jinshi)