Fortune Magazine: CoreWeave's Financial Situation Reflects the Typical AI Infrastructure Bubble, Debt Burden May Become a Hidden Risk

According to a report by Jinse Finance, Fortune Magazine revealed that CoreWeave recently signed a $1.17 billion AI agreement with Vast Data, a company invested in by NVIDIA. However, Bitcoin mining company Core Scientific has terminated its partnership with CoreWeave. An analysis of documents submitted by the company to the U.S. SEC shows that CoreWeave's business model carries significant risks. The documents are filled with warnings and cautionary notes. The latest quarterly report disclosed a total debt of $11 billion, indicating that CoreWeave's fundamentals are currently not optimistic, with profitability still a long way off. Furthermore, the company is facing a severe cash flow shortage due to its inability to issue more debt. Short sellers believe that CoreWeave is highly likely to fall into trouble due to its growing debt burden, potentially becoming the first domino to collapse in the AI ecosystem.