Jensen Huang says CoreWeave's financial situation has improved and capital costs have decreased

Nvidia CEO Jensen Huang stated that data center operator CoreWeave's financial situation is improving. Nvidia is CoreWeave’s computing equipment supplier. Speaking at an event in Stockholm, Huang said: “CoreWeave's strength is growing every day.” He believes there is no need for Nvidia to provide financial guarantees for CoreWeave. “I am optimistic. In fact, their cost of capital is decreasing.” Previously, confidence in CoreWeave in the credit market had deteriorated, with concerns rising about its default risk. Huang is attempting to restore market confidence in the company. CoreWeave is an important case for testing the sustainability of the business models of emerging artificial intelligence infrastructure companies. These companies have emerged to meet what Nvidia and others describe as an almost unlimited demand for AI computing power. Businesses like CoreWeave have taken on large amounts of debt with support from suppliers including Nvidia, sparking market concerns about circular financing creating artificial demand.