CoreWeave's CEO, Michael Intrator, has vehemently dismissed accusations of a "circular financing" scheme with Nvidia, branding them as baseless and mathematically unsound. He highlights that Nvidia's relatively minor investment pales in comparison to CoreWeave's substantial capital and valuation, emphasizing that their partnership is a response to the overwhelming market demand for computing resources rather than a covert financial arrangement. Intrator further clarified the company's strategic use of debt to fuel expansion and underscored the sustained economic viability of its AI hardware, even older models.
CoreWeave Defends Against Allegations of Financial Manipulation
On January 12, 2026, CoreWeave CEO Michael Intrator publicly refuted claims of "circular financing" with Nvidia Corp., appearing on the Big Technology Podcast. Intrator asserted that the allegations, which suggest Nvidia invested in CoreWeave to artificially inflate demand for its own chips, are "ridiculous." He pointed out that Nvidia's total investment of approximately $300 million across two funding rounds is insubstantial when juxtaposed with CoreWeave's raised capital of over $25 billion and its formidable $42 billion valuation. Intrator stressed that the collaboration between the two entities is primarily a consequence of a "systemically imbalanced market," where the demand for compute power far exceeds its available supply, rather than a strategy of financial engineering.
Furthermore, Intrator addressed concerns regarding CoreWeave's extensive reliance on debt to support its rapid expansion. He elaborated on the company's innovative "box" strategy, which employs special purpose vehicles to mitigate financial risk. This mechanism ensures that revenue generated from investment-grade contracts, particularly with tech giants like Microsoft Corp. and Meta Platforms Inc., is channeled into a restricted account. This capital is first allocated to cover operating expenses and debt obligations before any profits are released to CoreWeave, a model Intrator likened to the development of essential infrastructure such as power plants or railways due to its low-risk nature.
Adding to the defense, CoreWeave's Chief Strategy Officer, Brian Venturo, tackled skepticism about the depreciation of AI hardware. Venturo revealed that the company recently secured a contract renewal for its older Nvidia A100 chips, retaining 95% of their initial value. This example, alongside CoreWeave executives' arguments, challenges the notion that AI chips become obsolete within a short three-year timeframe. They contend that long-term contracts from sophisticated hyperscale clients demonstrate the lasting economic utility of older hardware, effectively debunking prevailing "depreciation narratives."
Despite a 39.46% decline in CoreWeave shares over the preceding six months, the company's stock experienced a significant 100.35% increase over the past year, with a year-to-date gain of 8.41% in 2026.
Reflections on Innovation and Market Dynamics in the Tech Sector
This episode serves as a powerful reminder of the intense scrutiny and often complex narratives that accompany rapid growth in the technology sector. It underscores the critical importance of transparent communication from company leadership in addressing public and market skepticism. CoreWeave's proactive stance in demystifying its financial strategies and technological valuation provides a valuable lesson in managing perceptions, particularly when dealing with innovative, yet capital-intensive, ventures. The debate around "circular financing" and hardware depreciation highlights the evolving understanding of value and investment in the fast-paced world of artificial intelligence and cloud computing. It encourages a deeper look beyond surface-level accusations to understand the genuine economic and strategic underpinnings of partnerships that drive technological advancement.