Fordel StudiosCoreWeave CEO defends AI circular deals as ‘working together’
What Happened
The CEO of the AI data center provider, which has Nvidia as an investor and a supplier, described the environment as a "violent change" in demand.
Our Take
"Working together" is what you say when the actual structure looks sketchy. Nvidia's their investor *and* their supplier. That's not collaboration—that's a deal that can't lose because money's spinning between the same two players. When demand actually normalizes (and it will), this whole setup gets stress-tested hard.
The CEO's defensive tone tells you everything. Nobody talks about solid fundamentals with that energy. Circular capital flows work great during boom cycles. They fail catastrophically when reality checks in.
What To Do
Track whether other infrastructure providers are quietly rejecting this model rather than adopting it as standard practice.
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