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.