Bill Gurley

Well, you know, somebody else I should mention is Morgan Stanley. I mean, they took a lot of heat last Friday, you know, on this deal. Why are you bringing it now? You know, the stock went below 40. CNBC was roundly critical of, you know, of the company, you know, and of Morgan Stanley. And the stock's at $60 or whatever it ended today at. And so, again... You know, we feel good as shareholders.

Well, you know, somebody else I should mention is Morgan Stanley. I mean, they took a lot of heat last Friday, you know, on this deal. Why are you bringing it now? You know, the stock went below 40. CNBC was roundly critical of, you know, of the company, you know, and of Morgan Stanley. And the stock's at $60 or whatever it ended today at. And so, again... You know, we feel good as shareholders.

Well, you know, somebody else I should mention is Morgan Stanley. I mean, they took a lot of heat last Friday, you know, on this deal. Why are you bringing it now? You know, the stock went below 40. CNBC was roundly critical of, you know, of the company, you know, and of Morgan Stanley. And the stock's at $60 or whatever it ended today at. And so, again... You know, we feel good as shareholders.

I feel good for the people involved in the company. Obviously, there are still questions, you know, that remain about the business. You mentioned depreciation.

I feel good for the people involved in the company. Obviously, there are still questions, you know, that remain about the business. You mentioned depreciation.

I feel good for the people involved in the company. Obviously, there are still questions, you know, that remain about the business. You mentioned depreciation.

The one thing I tell you about the depreciation argument as it relates to this company is, you know, a lot of people push on, you know, there's a statement by Jensen at GTC that, you know, hoppers may not have value because Grace Blackwell is so much better.

The one thing I tell you about the depreciation argument as it relates to this company is, you know, a lot of people push on, you know, there's a statement by Jensen at GTC that, you know, hoppers may not have value because Grace Blackwell is so much better.

The one thing I tell you about the depreciation argument as it relates to this company is, you know, a lot of people push on, you know, there's a statement by Jensen at GTC that, you know, hoppers may not have value because Grace Blackwell is so much better.

My view on this is like, listen, because we've got to square this circle. We have the SACS tweet. We know the inference demand is off the charts. Everybody is demonstrating their need for more GPUs to run inference. Everything in the world is becoming inference. We've talked about that at length. And so my view is this. When you talk about two years for GPUs,

My view on this is like, listen, because we've got to square this circle. We have the SACS tweet. We know the inference demand is off the charts. Everybody is demonstrating their need for more GPUs to run inference. Everything in the world is becoming inference. We've talked about that at length. And so my view is this. When you talk about two years for GPUs,

My view on this is like, listen, because we've got to square this circle. We have the SACS tweet. We know the inference demand is off the charts. Everybody is demonstrating their need for more GPUs to run inference. Everything in the world is becoming inference. We've talked about that at length. And so my view is this. When you talk about two years for GPUs,

They're going to—cutting-edge GPUs are going to be used for cutting-edge training for the, you know, frontier models in that first two-year period. But all these things are going to continue to get used for inference.

They're going to—cutting-edge GPUs are going to be used for cutting-edge training for the, you know, frontier models in that first two-year period. But all these things are going to continue to get used for inference.

They're going to—cutting-edge GPUs are going to be used for cutting-edge training for the, you know, frontier models in that first two-year period. But all these things are going to continue to get used for inference.

And the right way to think about CoreWeave, you know, and, you know, I think the consensus margins for this business are like 25% EBIT, you know, over the course of the next couple of years. How do they get there? You know, so think about their unit economics bill. you know, their CapEx, their OpEx. So they got to get a data center. They got to pay for all their operating expenses.

And the right way to think about CoreWeave, you know, and, you know, I think the consensus margins for this business are like 25% EBIT, you know, over the course of the next couple of years. How do they get there? You know, so think about their unit economics bill. you know, their CapEx, their OpEx. So they got to get a data center. They got to pay for all their operating expenses.

And the right way to think about CoreWeave, you know, and, you know, I think the consensus margins for this business are like 25% EBIT, you know, over the course of the next couple of years. How do they get there? You know, so think about their unit economics bill. you know, their CapEx, their OpEx. So they got to get a data center. They got to pay for all their operating expenses.

Then they got to buy the servers. So the way this works, I think, is they sell a four-year deal to Microsoft or a four or five-year deal to OpenAI or four-year deal to Google or whatever. They expect to pay back all the CapEx, OpEx, and GPUs in three years. And so the fourth year, which is a four-year guaranteed contract, the fourth year is your profit margin, right?

Then they got to buy the servers. So the way this works, I think, is they sell a four-year deal to Microsoft or a four or five-year deal to OpenAI or four-year deal to Google or whatever. They expect to pay back all the CapEx, OpEx, and GPUs in three years. And so the fourth year, which is a four-year guaranteed contract, the fourth year is your profit margin, right?