Jaden Schaefer

So as part of this deal, NVIDIA and CoreWeave say that they're going to kind of jointly develop what they're calling AI factories.

These are large scale data centers and they have a very specific purpose, which is for

training and running AI models.

And that's all of it is, of course, going to be using NVIDIA's hardware.

So NVIDIA, this is a smart move for them.

They are finding one of the bigger, one of the bigger players in data centers.

And they're saying, look, we'll invest in you, but you're going to lock in with our hardware.

And of course, also their software stack.

So CoreWeave is also going to standardize on NVIDIA technologies across its platform.

So that includes the upcoming Rubin GPU architecture, which is expected to come after the Blackwell along with

Bluefield Networking and Storage Systems and NVIDIA's, they kind of have this new CPU line that they just announced, which is called Vera.

So CoreWeave's going to be integrating with all of that.

I think it's also a really interesting investment because it's basically a vote of confidence when CoreWeave has been under a lot of scrutiny for its

basically the structure of its capital structure, right?

So they've leaned really heavily on debt to finance their expansion, which, like, let's be honest, this company is growing at an absolutely impressive rate, but they're using their own inventory of GPUs as collateral for all of the debt that they've taken on.

So according to, if you look at PitchBook and you kind of look at some of the data over there, CoreWeave has about $18.81 billion in debt,

as of September last year.

And so at the same time, they also have about $1.36 billion in revenue in the third quarter.

So I think you can see there's also, you know, a lot of demand for their services, but also like almost $19 billion in debt.

And let's say they're making like $5 billion a year.