Nvidia, CoreWeave, and Nebius: A Look Inside the Circular Financing Structure of the GPU Boom

To scale AI infrastructure, Neocloud companies (CoreWeave, Nebius, etc.) are growing rapidly, but their growth model carries significant risk.

Key Status:

• Microsoft has signed commitments worth approximately $60 billion with Neocloud companies such as CoreWeave and Nebius.
• Meta has committed $35.2 billion to CoreWeave and up to $62.2 billion to Nebius, holding over $122.2 billion in potential commitments in total.
• These massive commitments far exceed the current revenues of the Neocloud companies.

Growth Drivers and Risks:

• Hyperscalers use Neoclouds for fast access to the latest GPUs and to optimize compute utilization, as well as to shift capital expenditure (CAPEX) into operating expenses (OPEX).
• However, Neocloud companies are taking on massive debt to secure enormous power capacity and build data centers, creating a structure vulnerable to deteriorating profitability and macroeconomic volatility.
• In particular, the Circular Financing structure combining Nvidia's investments and financial support is cited as a key factor that will determine the sustainability of the AI infrastructure boom.