Two-thirds of CoreWeave’s revenue last year came from a single customer: Microsoft.
Now that customer says it’s going to “reassess.”
CRWV closed Friday at 53.13, down 6.13%. Nebius got hit even harder, falling 9.92% to close at 115.88. Both stocks are down more than 35% since early October.
This isn’t exactly new. Reports in early November said Microsoft was trimming its list of neocloud partners: it won’t renew its old contract with Oracle, and it didn’t exercise the expansion option for Nscale’s Texas facility. Microsoft had committed more than $80 billion in total to computing capacity from these third parties. It says it wants to “consolidate suppliers” and prioritize building its own data centers. Once its in-house Maia 300 chips ramp up in 2027, it’ll need even less outsourcing.
The part that really stings: neoclouds are valued on the assumption that Big Tech’s capex will keep spilling over to them. But now the biggest spender wants to bring the work back in-house 🫠
And IREN is on that list too—it’s a former crypto miner that pivoted to AI cloud. Last year, these miners went all-in on the AI story, and their stocks rode the neocloud beta higher. Now BTC is at 67,000, mining margins were already thin, and the biggest AI customer is cutting back. Both legs are giving way.
Interest rates aren’t helping either. The 10-year yield is still above 5.1%, and for companies borrowing money to build data centers, financing costs keep getting more expensive by the day.
Nvidia reports next Tuesday, so these stocks will probably take another roller-coaster ride.
#AI #美股 #BTC
$CRWV $BTC
Now that customer says it’s going to “reassess.”
CRWV closed Friday at 53.13, down 6.13%. Nebius got hit even harder, falling 9.92% to close at 115.88. Both stocks are down more than 35% since early October.
This isn’t exactly new. Reports in early November said Microsoft was trimming its list of neocloud partners: it won’t renew its old contract with Oracle, and it didn’t exercise the expansion option for Nscale’s Texas facility. Microsoft had committed more than $80 billion in total to computing capacity from these third parties. It says it wants to “consolidate suppliers” and prioritize building its own data centers. Once its in-house Maia 300 chips ramp up in 2027, it’ll need even less outsourcing.
The part that really stings: neoclouds are valued on the assumption that Big Tech’s capex will keep spilling over to them. But now the biggest spender wants to bring the work back in-house 🫠
And IREN is on that list too—it’s a former crypto miner that pivoted to AI cloud. Last year, these miners went all-in on the AI story, and their stocks rode the neocloud beta higher. Now BTC is at 67,000, mining margins were already thin, and the biggest AI customer is cutting back. Both legs are giving way.
Interest rates aren’t helping either. The 10-year yield is still above 5.1%, and for companies borrowing money to build data centers, financing costs keep getting more expensive by the day.
Nvidia reports next Tuesday, so these stocks will probably take another roller-coaster ride.
#AI #美股 #BTC
$CRWV $BTC