Gurley questions Nvidia's contract guaranteeing to buy CoreWeave's excess capacity as abnormal business practice.
“But then they wrote a contract with CoreWeave, which said if CoreWeave ever has extra capacity, we'll buy that capacity, which presumably helps it get more debt financing, that kind of thing.”
Gurley flags NVIDIA's promise to buy unsold CoreWeave capacity as highly unusual arrangement.
“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.”
Gurley flags NVIDIA's unusual promise to buy unsold CoreWeave capacity as revealed in regulatory filings.
“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 NVIDIA promised to buy any unsold CoreWeave service availability, disclosed in CoreWeave filing, calling it very unusual.
“That is very unusual. That's not the same as making an investment. That could easily help CoreWeave with their debtors and and getting more debt financing.”
Gurley realizes NVIDIA needs multiple large system companies like CoreWeave to maximize its competitive advantage.
“Like like like if if the biggest systems are where the biggest competitive advantage is, you need as many of these big system companies as you can possibly have.”