Data Center Poster Child Strikes Back
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TL;DR
- CoreWeave's revenue increased by 168 percent in the third quarter due to booming AI computing demand.
- Even older Nvidia chips are seeing sharply higher rental prices.
- Political backlash and election-driven concerns about data center restrictions are a potential risk.
- CoreWeave is expanding its power capacity in Texas, with most of it online, permitted, or under construction.
- SpaceX is emerging as a competitor in the neocloud space, alongside other tech giants increasing capacity.
- A sustained AI computing shortage is vital for CoreWeave to keep rental prices high enough to cover expansion costs.