Michael Intrator Talks Data-Center Delay, Supply Chain

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Unknown 1:03
Bloomberg Audio Studios. Podcasts. Radio. News. Let's talk about where we are in this cycle because Corweave shares, as Ed pointed out earlier, under pressure. That's after it lowered its annual revenue forecast due to a delay at a third party developing a data center. It really overshadowed impressive growth in revenue and order backlog. Let's get straight to it with Corweave CEO Michael Intrater. How frustrating is it that you don't own your entire supply chain? How much of an issue is the sort of power you have to give to third parties?
Michael Intrator 1:33
Oh, so look, I think it's important to understand that every single part of this ecosystem is dependent upon other parts of the ecosystem. Nobody controls the entire supply chain. And that's just the nature of doing business at this scale on projects that are as complicated as this, whether it's, you know, you know, the design and architecture of the chips, through the fabrication of the chips, through the building of the data center, through the concrete that has to go into the data center. It's really hard to even contemplate a world in which you have true control over every aspect of it. And so you're going to work with partners, and you're going to work with good partners that are able to help you drive your business forward.
Unknown 2:28
Is this a good partner who's had issues at this PowerShell level?
Michael Intrator 2:31
Yeah, look, they are a good partner, right? Like we've been working with these guys since 2018. There has been a stumble. There's an issue. The issue is going to be cleaned up rapidly. But I wouldn't say that they're not a good partner. I think that, you know, we've gone back and contracted with them again and again. And, you know, they've contracted with us again and again because, you know, we do work well together. It's just, you know, occasionally you hit a, a bump in the road. What we're talking about here is a contract that gets pushed back by one quarter, let's say. And the impact of that on our revenue is a delay of revenue, not a loss of revenue. And I think that is the definition of working with an ecosystem of good partners.
Tracey Alloway 3:20
Michael, good morning. Which customer was it, please, that was impacted by this delay?
Michael Intrator 3:25
We don't speak to specific customers within the data centers. That's not how we look at it. But we really are working with the whole material part of the broader kind of... ecosystem that consumes compute at this scale. So, you know, there's a large project. It's from a large counterpart. And, you know, like I said, you know, they understand the impact of this delay and that they are shifting with us the contract back to ensure that the total contract value that was being contemplated is going to be captured at this facility.
Right.
Tracey Alloway 4:06
I thought you might say that, but I wanted to offer you the opportunity to explain who the customer was anyway. I appreciate that. This is gonna sound a little bit like I work in your internal audit team or in your risk team, but there is a bigger issue here of managing third-party risk as much as you can.

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