Jason Hall

But there's still a tremendously rich valuation based on the expectation.

Even with the sell-off, that's important to remember.

Here's the core, for those that haven't followed CoreWeave.

It's built up some really strong IP that it says makes its data centers better and more efficient for AI developers.

It's a who's who in AI and cloud computing.

It has an almost $60 billion backlog.

$50 billion of that is contracted remaining performance obligation, or RPO.

Growth rates are certainly astronomical, if we can keep that theme going.

They're likely to remain exceptionally high for some time to come.

There are also some signs that its scale-up is driving improvements.

If we look at its financial results, adjusted EBITDA, adjusted operating income, and its margins, they did improve in the quarter.

Adjusted losses fell.

I think this is a business that is likely to be a lot larger in five years.

But even with those improvements,

and the growth, it's far less clear how much of that growth is going to flow through to investors.

This isn't a software company.

It's an infrastructure business with a technology overlay.

Building all of the data centers that it needs to meet demand is coming at a massive cost.

We're going to see a lot of that cost to the balance sheet.

Just for some context,