Core Weave Warns Switching From Nvidia Chips Could Be Difficult
CoreWeave Inc. warned investors that moving away from its current exclusive use of Nvidia artificial-intelligence chips could require substantial time and money. In a regulatory filing Wednesday, CoreWeave said changes in customer demand could require it to invest “time, money and resources” to obtain alternatives to Nvidia graphics-processing units, or GPUs. The company warned that this could ultimately affect its ability to provide customers with the products they need. CoreWeave is an AI-computing provider and one of the so-called neoclouds. Nvidia, a leading AI-chip maker and a close CoreWeave partner, owns 10% of the company. All of the GPUs currently used by CoreWeave customers are supplied by Nvidia. Many large AI-computing customers are developing their own chips to reduce their reliance on Nvidia’s AI products. One of CoreWeave’s largest customers, OpenAI, has unveiled its first AI accelerator developed with Broadcom. For now, however, Nvidia remains the undisputed leader in the field. The new language indicates that CoreWeave is assessing a scenario in which Nvidia’s dominance in AI chips declines. The disclosure appears in the risk-factors section of CoreWeave’s quarterly earnings filing, where companies typically outline hypothetical situations that could affect their businesses. CoreWeave declined to comment further beyond the filing. CoreWeave shares rose 19% to close at $107.73 in New York on Wednesday, Aug. 12.
In a regulatory filing Wednesday, CoreWeave said changes in customer demand could require it to invest “time, money and resources” to obtain alternatives to Nvidia graphics-processing units, or GPUs. The company warned that this could ultimately affect its ability to provide customers with the products they need.
CoreWeave is an AI-computing provider and one of the so-called neoclouds. Nvidia, a leading AI-chip maker and a close CoreWeave partner, owns 10% of the company. All of the GPUs currently used by CoreWeave customers are supplied by Nvidia.
Many large AI-computing customers are developing their own chips to reduce their reliance on Nvidia’s AI products. One of CoreWeave’s largest customers, OpenAI, has unveiled its first AI accelerator developed with Broadcom. For now, however, Nvidia remains the undisputed leader in the field.
The new language indicates that CoreWeave is assessing a scenario in which Nvidia’s dominance in AI chips declines. The disclosure appears in the risk-factors section of CoreWeave’s quarterly earnings filing, where companies typically outline hypothetical situations that could affect their businesses.
CoreWeave declined to comment further beyond the filing.
CoreWeave shares rose 19% to close at $107.73 in New York on Wednesday, Aug. 12.