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By far the most interesting part about CoreWeave's S1 is their debt structure. Everyone on the street knew that their multi-year contract with Microsoft was what allowed them to get such a low interest rate. What was not public was their variable interest rate based on customers.
CoreWeave just filed to go public. Some notes:. • $1.9B in revenue in 2024, up >8x y/y (!).• Have 32 purpose-built data centers running 250K+ GPUs.• Pioneers of "GPU infrastructure-backed lending" with ~$13B in debt.• ~17% operating margins but additional interest expense.
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Congrats to @jdlichtman's incredible work! All of the Lean statements were generated by AI to show the result of de Bruijn's work on the abc conjecture!
A mathematical paper autoformalized for the first time: amazing work by @morph_labs, presented today at the Big Proof conference by @jdlichtman and @jessemhan. I am very impressed by the blazing fast progress of the morph team. Especially by @LeyanPan and @critic_model.
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RT @jdlichtman: We are launching a new Lean project to formalize a proof of the ABC conjecture almost always. Based on our paper below, pr….
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Global Crossing's valuation peaked at $47B before buckling under $12B of debt. It was later sold for $3B. Founder made $734mm despite all of this.
@bgurley How about this analogy: Coreweave is Exodus Communications/Global Crossing?.
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coreweave bankers running the ipo:
CoreWeave ~5x oversubbed, will launch.
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Imagine Crusoe becoming vertically integrated. Start drilling and pumping oil and gas, sell the oil, and use the gas for power generation. Capture the CO2 from their nat gas power plant, pump it back into oil wells for 45Q tax credit, and repeat the process. That’ll make the.
4.5 gigawatts and a stargate contract 🫡 love to see @CrusoeAI winning, the bitcoin miner to neocloud pipeline is the stuff of legend.
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(this was a quick back of the envelope calculation so all feedback welcome!).
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Calling it now: CoreWeave 1) definitely has additional debt facilities lined up that is not yet public or 2) is expecting 2025 revenue to be well-below $10B. CoreWeave installed $7.8B worth of GPUs in 2024 during a time when their revenue 10x. They have a 3-month runtime needed.
So Nvidia is Coreweave's second biggest customer. Nvidia invested $100M in Coreweave, allocated them chips when they were a scarce commodity, and committed to spending $300M/year renting back their GPUs from Coreweave.
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never a boring day with coreweave - they instantly doubled their 2024 revenue with this deal
By far the most interesting part about CoreWeave's S1 is their debt structure. Everyone on the street knew that their multi-year contract with Microsoft was what allowed them to get such a low interest rate. What was not public was their variable interest rate based on customers.
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another convertible note issuer *only* made 22x by entering just a year later vs. 173x . these guys are probably sweating bullets awaiting the ipo.
Whoever issued CoreWeave's 2021 debt made absolute bank. A $4mm note at 7% interest rate was converted to 624,227 shares that was marked up to $69mm 2 years later and now worth ~$690mm.
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Whoever issued CoreWeave's 2021 debt made absolute bank. A $4mm note at 7% interest rate was converted to 624,227 shares that was marked up to $69mm 2 years later and now worth ~$690mm.
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Check out @ByrneHobart's recent piece on CoreWeave. As I've mentioned in the past, Nvidia is OPEC before fracking came along. They control the supply and in turn the price, ultimately affecting what downstream players are able to do. Lots of parallels to the E&P industry.
By far the most interesting part about CoreWeave's S1 is their debt structure. Everyone on the street knew that their multi-year contract with Microsoft was what allowed them to get such a low interest rate. What was not public was their variable interest rate based on customers.
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Not sure how much juice is left for Microsoft to increase their demand, but I fully expect CoreWeave's average interest rate to start ticking up as they onboard more startups and emerging AI players onto their platform.
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DDTL 2.0 was also started in May of 2024, when Microsoft started taking a larger share of CoreWeave's total revenue. Hence CoreWeave's 10.53% interest rate right now.
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This I think is more concerning with the recent news of Microsoft canceling leases because CoreWeave can add 700 basis points to their interest rate (for incremental debt taken) if their customer base shifts to smaller enterprises.
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