Decoder with Nilay Patel The company at the heart of the AI bubble
308 snips
Nov 13, 2025 
Liz Lopatto, a Senior Reporter at The Verge, dives into the complex world of AI infrastructure and CoreWeave's pivotal role in it. She unpacks how CoreWeave transitioned from crypto mining to become a major player in AI, relying heavily on NVIDIA for its GPU supply. Liz discusses the financial risks tied to CoreWeave's business model, the potential for an AI bubble, and the implications of circular financing within the tech ecosystem. Her insights raise questions about whether CoreWeave can sustain itself as a public company amid heavy debt and fluctuating demand.
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Crypto Pivot Fueled A NeoCloud Rise
- CoreWeave pivoted from Ethereum mining to leasing NVIDIA GPUs as AI demand rose.
- It built a NeoCloud business that rents specialized GPU compute to large AI customers.
Engineering And Energy Are Its Moat
- CoreWeave's advantages are connectivity expertise and access to energy rather than unique software stacks.
- Those advantages let it charge premiums but may not be durable long-term.
Crypto Roots And Perfect Timing
- CoreWeave originated in crypto and timed a pivot after Ethereum mining profits collapsed.
- Many crypto miners similarly shifted into AI when model demand surged post-ChatGPT.
