this post was submitted on 24 Oct 2026
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So wait. What is the story with coreweave. You mentioned labs desperate for gpu, and there very much is a shortage. Coreweave rents that. So they should be making miney handover fist.
Coreweave makes long term revenue deals before building anything, but they charge too little. They are forced to accept whatever price hikes Nvidia tells them to pay, and are running out of cash in next 2 months, with borrowing rates over 15% to get more cash. In last quarter, their average interest rate was over 8%, and even if they used a 10 year depreciation schedule, they would still have lost money.
When hourly GPU rental prices go up, coreweave doesn't make more money. They have tiny spot inventory. It is also a lie that there is gpu shortages, because if there were, there wouldn't be such rapid model releases. NVidia GPUs are only competitive at training, but if there were any genuine scarcity, new models would come out slower so that inference/revenue making could be prioritized.
Hm, so boring from tomorrow to make profits today is catching up with them. Guess I am not surprised.
I dunno about that rational to say there isn't a shortage. I know consumers struggle to buy GPUs, even when they are willing to pay a lot. And a buddy of mine works at a company where they couldn't get enough GPUs for their datacenter and were forced to rent from coreweave.
Sure there is scarcity in accessing Nvidia supply. Consumer GPU pricing is based on them not making any. There is abundance of GPU time available for training that explains the fast pace of new model version releases. Fast model releases also juice inference revenue as shinny new models get investigated, until next week something better comes along. The bottom line is that burning money on GPUs has plenty of GPUs available to burn it on. Labs would be releasing slower if there wasn't.