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Coreweave and AI Demand

November 11, 2025


Coreweave (CRWV) is an upstart cloud computing provider.  They reported earnings last night.  The company was originally built for super-fast bitcoin mining.  But they are now pivoting to cloud-hosting for AI.  Unlike the big dogs – AWS, Microsoft, Google, and now Oracle – Coreweave is small but built for speed.   If AWS and Microsoft are the Toyota and Honda of cloud computing, Coreweave is the Ferrari.  They are small but super fast.


CRWV reported earnings last night.  As you might imagine, results were off the charts.   Revenue grew 134% last quarter.  However,  guidance was weak.  … Wait, what?! … Is AI demand slowing down?!   As if.  It’s actually the opposite.  They literally can’t build the data centers fast enough.  It’s kind of a funny story.


You see, CRWV’s business model uses what’s called a “powered shell”.   That is basically a giant concrete warehouse building, fitted with electrical and other utilities.  Coreweave leases a powered shell from a data center operator.  Then they move in and install racks and racks of computers, cooling, and other equipment.  Basically, Coreweave leases the “factory” but then installs its own “machines” to make the donuts.  


One of the data center operators that Coreweave uses is behind schedule.  They literally can’t build the building fast enough!   Coreweave stock is down today on the disappointing guidance.  But needless to say, it shouldn’t be seen as a slowdown in demand.  


Our AI basket is down today (-2% at the moment), as this “building construction” constraint might actually be a limit to AI related growth.  But needless to say, this is not an indication that DEMAND is falling.  That would be a real problem.

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