Gurley warns NVIDIA backstop obscures real demand signals for CoreWeave from investors.
“That could easily help CoreWeave with their debtors and and getting more debt financing. But it also means as a investor, we we don't know what's going on with real demand for CoreWeave because we probably won't be told if they start moving into the world where they're offloading to NVIDIA or not.”
Gurley reveals NVIDIA promised to buy any CoreWeave service availability they cannot sell to others.
“One of the more peculiar of all the deals is, and this was disclosed in a CoreWeave filing, was NVIDIA has promised to buy any of CoreWeave's service availability that they can't sell to anyone else. That is very unusual. That's not the same as making an investment.”
Gurley says ChatGPT unprompted compared AI circular deal structures to WorldCom and Enron when he described them.
“And it immediately started talking about WorldCom and Enron unprompted by me. I just said, what do you think about these types of structures?”