CoreWeave’s strategy is a ticking time bomb for the AI market. It relies entirely on debt to fund operations while inflating valuations through compute-for-equity deals. The illusion of growth props up investor confidence, but when borrowing stalls, collapse will be sudden and brutal.
Nvidia-backed CoreWeave $CRWV loses 24 cents on every dollar in sales. The company has a working capital deficit of $3.6 billion plus long-term debt of $10.6 billion. Its only asset is $NVDA GPUs which depreciate rapidly. The company survives on raising debt to fuel its losses.… pic.twitter.com/SAc1app9zE
— Kashyap Sriram (@kashyap286) September 9, 2025
If you have an issue with GAAP numbers, take it up with the FASB.
— Kashyap Sriram (@kashyap286) September 9, 2025
Hey but they gave a little preview that revenues will grow like this: 1 to 4 to 16 to 32 to 128 to 516 to 1024 in next few years. They know future, for sure. $ORCLhttps://t.co/0QbH1Sl2lB https://t.co/9veftY38BO
— Marko Kolanovic (@markoinny) September 9, 2025
$ORCL if it keeps ~30% gap probably a great short tomorrow. Projecting an exponential growth 4 years out is garbage. There will almost certainly be a recession within the time horizon, growth turning negative. How about competitors, new entrants, new technologies, etc.
— Marko Kolanovic (@markoinny) September 9, 2025