CoreWeave CEO Calls Claims Of Circular AI Deals 'Fundamentally Flawed'

Benzinga

CoreWeave CEO Michael Intrator rejected claims of “circular” AI investments, saying Big Tech’s deals reflect real demand. After a $1.5B IPO, CoreWeave’s stock has surged 200% amid multibillion-dollar contracts with OpenAI, Meta, and Nvidia.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02Corweave CEO Michael Entrader dismissed claims that the company's AI partnerships involve

00:07circular investments, calling the ideal fundamentally flawed in a CNBC interview.

00:11He said major tech companies like Mato, Microsoft, Amazon, and Google are buying AI infrastructure

00:16to meet real client demand, not to engage in circular investments. Corweave, which went

00:20public in March after raising $1.5 billion in the largest U.S. tech IPO since 2021, has

00:26seen its stock rise more than 200%. The company recently expanded its deal with OpenAI to $22.4

00:31billion and announced new contracts with Meta and NVIDIA worth $14.2 billion and $6.3 billion

00:36respectively. Some Wall Street analysts worry that big tech's AI deals are circular, the

00:41money simply cycling between companies. The trader countered that the agreements reflect

00:45a major infrastructure buildout and normal industry partnerships to meet consumer demand.

00:49For all things money, visit Benzinga.com.

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