Artificial intelligence (AI) unleashed a historic wave of demand for computing power -- and few companies are riding that wave quite like CoreWeave (CRWV 2.02%). Once a small crypto-mining outfit, the company evolved into one of the most important players in AI infrastructure, quietly powering some of the world's largest model developers.
While OpenAI and Nvidia capture most of the AI headlines, CoreWeave sits in the background -- building the muscle that keeps the AI revolution running.
Image source: Getty Images.
A purpose-built cloud for AI
CoreWeave's business model is simple but powerful: It provides GPU-based cloud computing optimized for artificial intelligence workloads.
Instead of offering general-purpose cloud services like Amazon Web Services or Microsoft Azure, CoreWeave focuses exclusively on the kind of high-performance, low-latency compute clusters that AI model training requires. Its data centers are packed with the latest Nvidia GPUs, connected through ultra-fast networks and liquid cooling systems designed to handle massive training runs.
Customers -- from AI start-ups to large enterprises -- rent this GPU capacity through multiyear, take-or-pay contracts, meaning CoreWeave gets paid regardless of whether the customer uses the full allocation. That structure gives it unusual revenue visibility for a young company and reduces the volatility that typically comes with cyclical tech spending. As of the end of 2024, the tech company had $15.1 billion of remaining performance obligations.
In short, CoreWeave provides the infrastructure that allows AI models to be built, trained, and deployed at scale. It's the unseen backbone of the AI boom.
CoreWeave rides on a compute supercycle
To understand why investors are so excited, it helps to step back and look at the macro picture.
AI triggered an unprecedented compute supercycle. Training large models like GPT-4 or Claude 3 requires tens of thousands of GPUs working in parallel for weeks or months. Running those models every day (known as inference) consumes even more computing resources as applications scale to millions of users.
According to Grand View Research, the global data center GPU market size was estimated at $14.5 billion in 2024 and is projected to reach $190.1 billion by 2033, growing at a compound annual growth rate of 36% from 2025 to 2033. Supply remains tight, with Nvidia struggling to meet orders, and hyperscalers like Microsoft, Meta Platforms, and Amazon locking up capacity years in advance.
In that environment, companies that can quickly deploy optimized GPU clusters are in short supply -- and that's precisely where CoreWeave shines.
CoreWeave's edge
Three things set CoreWeave apart and explain why investors see it as one of the most promising infrastructure plays of the AI era.
1. Deep partnerships with Nvidia and top AI builders
CoreWeave cultivated one of the closest relationships with Nvidia outside the major cloud providers. That partnership gives it priority access to the newest chips, including the RTX PRO 6000 and B200 GPUs, often before they reach the broader market.
It also counts OpenAI, Microsoft, and Meta Platforms among its customers -- partnerships that bring both scale and credibility. These deals aren't short-term either; many are multiyear commitments worth billions.
2. Explosive growth and high visibility in revenue
The company is growing at breakneck speed. In its Q2 2025 earnings presentation, the company reported that revenue tripled year over year, fueled by an order backlog exceeding $30 billion. Those long-term commitments give the company strong visibility, something investors prize in a fast-growing sector.
3. A focused technological advantage
CoreWeave's infrastructure is purpose-built for AI -- not retrofitted from a legacy cloud. Its data centers are engineered to achieve substantially higher total system performance and more favorable uptime compared to other AI offerings within existing infrastructure cloud environments, unlocking speed at scale. That technical focus helps customers train models faster and more efficiently, saving time and money.
In an industry where speed equals competitive edge, CoreWeave's focus on AI computing translates directly into customer loyalty.
What does it mean for investors?
CoreWeave sits at the intersection of two powerful forces: an insatiable global appetite for AI compute and a shortage of high-performance infrastructure to deliver it. By focusing narrowly on GPU cloud services, locking in long-term contracts, and maintaining a close alliance with Nvidia, CoreWeave carved out a vital role in the AI ecosystem.
For long-term investors betting on the infrastructure side of artificial intelligence, CoreWeave represents something rare -- a pure play on the physical foundation of the AI revolution.
It's a company that investors should track closely in the coming quarters, if not decades.
