00:00CoreWeave this morning announcing a convertible bond issue of $3 billion.
00:03What does that tell us about this company's position here and about the industry more broadly?
00:08Well, CoreWeave specifically is supply constrained like everyone else.
00:13The demand for their compute platforms outpaces what they've actually built and deployed in the real world.
00:18So for them, capital is just an unlock.
00:21It allows them to grease the wheels to get more capacity online, and that capacity is already committed.
00:27In large part to companies like OpenAI.
00:30They have very large contracts with them.
00:32And so that's kind of the counterargument to the circular financing or artificial demand debate, pardon the expression, is that
00:40there just isn't enough compute relative to demand right now.
00:43Loads of people have used converts as a mechanism.
00:45Others have used just pure debt.
00:47In CoreWeave's case, they've got a lot of all three.
00:50Converts, debt, and pure equity that they're doing to manage their capital in order just to get moving faster.
00:55Build the tin can that we call a data center.
00:58Hey, Ed, we appreciate it.
00:59That's Bloomberg's Ed Ludlow.
01:01And Ed, we're going to see you back later this hour for a conversation with the CEO of Lucid on
01:05their announcement, a partnership with Bolt for Autonomous Vehicles.
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