CoreWeave Behind the AI Hype, a Debt-Fueled Illusion
Nvidia is investing $2B in CoreWeave, deepening a partnership central to AI infrastructure expansion. CoreWeave plans to build over 5 GW of AI data centers by 2030 using Nvidia’s next-gen platforms. However, despite the hype, CoreWeave’s financials raise serious concerns: the company is losing money on every dollar of revenue, carries a massive working-capital deficit, holds over $10B in long-term debt, and relies on rapidly depreciating GPU assets. Facing weak demand, CoreWeave is increasingly using “compute-for-equity” deals—trading GPU capacity for startup equity at inflated valuations—effectively acting like an AI venture capitalist rather than a stable infrastructure provider. The business model depends on continued access to debt markets; if funding dries up, risks fall heavily on retail investors while early institutional players are likely already exiting.
Gold would be ~$9,700 if it kept up with M2 To hit $40,000/oz, Gold would need to add about $246 Trillion in market cap from today's levels.
Source: Katusa Research @KatusaResearch
ECB President Christine Lagarde: "Europe is going to do a big SWOT analysis and decide what do we need to do to be strong by ourselves."
Source chart : FT Source image: Reuters
Countries joining Trump's peace board
Source: Rothmus @Rothmus on X
Foreign ownership of US debt rises to an all-time high.
Source: Daniel Lacalle @dlacalle_IA Bloomberg
Yesterday was the 15th straight day that the S&P 500 ($SPY) has failed to outperform the Russell 2000 ($IWM)
IWM is now outperforming SPY by almost 900bps YTD... Source: www.zerohedge.com, Bloomberg
A shocking chart while Gold is flirting with $5,000/oz, it remains historically undervalued versus a 50/50 (S&P 500 / US Treasuries) portfolio
Source: Bloomberg, www.zerohedge.com
The United States now produces more oil than Saudi Arabia and Russia combined
This also explains why oil shocks today tend to be shorter-lived than in the past. There is simply more swing capacity in the system, and a lot of it sits in the US... Source: Jack Prandelli @jackprandelli
