/biz/ - Business & Finance

This deserves its own thread.

Damage control team out in force today to shut down the CoreWeave/NVIDIA story that has been breaking into the retail information space.

>CoreWeave starts as an ETH mining company headed by hedge fund managers who were deeply involved in carbon credit fraud during the mid 2000's
>CoreWeave pivots to GPU compute targeted towards AI as the AI hype starts growing
>CoreWeave gets a 2+ billion debt facility from Magnetar Capital who is known for playing both sides of the '08 crisis with CDOs.
>CoreWeave orders GPU's from NVIDIA with these funds and uses the chips as collateral for the loan from Magnetar
>This order from CoreWeave was a major factor of driving up NVIDIA's stock price, hence the entire market recently
>FinTwit and FinTube get ahold of the information and start asking questions
>Major red flags raised about those involved at every level. Shell companies, tax fraud, unethical dealings in their history.
>Ad hominem hit pieces and damage control articles come out attacking those asking questions
>Strawman is built: "Idiot low IQ conspiracy theorists! CoreWeave is not a shell company!" which was never said
>All legitimate concerns and criticisms are ignored. "GPU demand is very strong, Google and Microsoft can't get enough!" parroted.

CoreWeave's platform is currently very rudimentary, and building it out to convert billions in GPU's to a legitimate compute service seems a nearly insurmountable task given the current economic climate.

Why did NVIDIA choose CoreWeave instead of selling these chips to the big fish like Microsoft, Google, OpenAI, etc?

Why is everyone involved a sleazy scumbag? This whole thing smells like shit and combines the worst of Silicon Valley e/acc types and WallStreet grifters. A big financial engineering grift.