00:00What does it mean to be adding Meta to the fold as well as OpenAI more recently, of course, and Microsoft?
00:06Well, it means that CoreWeave isn't just a colonial state of Microsoft, right?
00:10That was the concern for so long with these neoclouds that, gosh, if their biggest customers are companies that also effectively compete with them,
00:19that seems like a pretty indefensible business.
00:22But you start getting companies like Meta and OpenAI who are likely to be longer-term buyers of this technology.
00:28And so I think folks are getting more comfort that CoreWeave and companies like it may have a more sustained place in this AI infrastructure build-out.
00:38$14.2 billion is a very large number, Brody, but the terms of the contract extend to 2032.
00:44You know what I'm going to say because we discussed it this morning.
00:47There is skepticism here because there are many unknowns.
00:49For example, does CoreWeave actually have a data center somewhere that's built and operating that they can assign Meta's workloads to?
00:58Well, what the CEO told me is that they never sign a deal if they don't have the right power and data center allocation ready to go.
01:06I don't think there's a data center that they're just going to flip on and say, all right, Meta, here you go.
01:11But, you know, this contract goes until 2031.
01:15They're probably going to need to buy a bunch of chips, fill it up, and hand it over to Meta.
01:18And what that also means is they're going to take out a lot more debt.
01:22I mean, CoreWeave is kind of famous at this point for levering itself up to a pretty incredible degree, and we'll probably see a little more of that.
Be the first to comment