📊 IPO Breakdown: Gavin Baker on CoreWeave
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Episode Description
Full episode: https://youtu.be/Iazo7g40VbQ
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Brief Summary
CoreWeave faces investor skepticism due to challenges in managing GPU clusters and market perceptions of its business model.
Key points
- The $10 Billion Business. Creating a successful retail business across states requires exceptional management.
- Coreweave's Challenge. Running big GPU clusters is harder than it seems, challenging the commodity perception.
Transcript
investors on X are pretty negative on coreweave I think there's maybe a little bit of you know negativity in the market They had to you know reduce the range lower the price and everyone is very convinced this is a commodity business Loads of debt loads of capex Wall Street consensus has been wrong before and I do think Coreeave runs these big GPU clusters as well as anyone and there aren't that many people on planet Earth who can run them well In America if you can pick any category any retail category and if you can run a thousand stores in 50 different states with different preferences and have those stores well lit clean stocked by
friendly employees with the right stuff in stock you will create a business that is worth you know well over $10 billion And that sounds easy but very few companies have been able to do it What may be um underappreciated about Cororeweave is it's actually really hard to run these big training clusters Um everybody thinks it's easy but to synchronize tens of thousands of GPUs where they're melting or cables are being unplugged and you know you lose a bunch of training data when it happens It may not be the commodity that everyone thinks it is And it may turn out that it's much harder to do than people
