Crusoe CEO said AI the cloud sector has been oversold, defending CoreWeave
BIBIBI
AT A GLANCE
Crusoe CEO said AI cloud service providers had been oversold, and said that CoreWeave was in a good position.
Article
Crusoe CEO said AI the cloud sector has been oversold, defending CoreWeave BlockBeats reported that October 28, according to Bloomberg,AI computing provider Crusoe CEO Chase Lochmiller said at the Bloomberg Invest conference in Dallas: the recent sell-off targeting emerging cloud service providers was an “overreaction,” and competitor CoreWeave has secured some “very good deals” and is currently in a fairly strong position.CoreWeave is at the center of market concerns about AI infrastructure boom and its massive debt financing. Its bonds fell to distressed levels this month, while its share price has declined by more than 30%. Lochmiller said that Crusoe’s AI cloud-computing business continues to face strong and broad-based demand.Crusoe is participating in the development of the flagship data center for the OpenAI and Oracle Stargate project in Texas, while also providing AI cloud computing. The company completed financing of more than 3000000000 USD last month, at a valuation of approximately 30000000000 USD.
However, people familiar with the matter previously told Bloomberg that some technology companies had doubts about whether Crusoe could bring large data centers online and keep them operating. Earlier this year, Oracle and OpenAI decided not to lease additional capacity at its Abilene, Texas project, and the space was subsequently taken over by Microsoft.
Original link https://m.theblockbeats.info/flash/374034
Key points
01
Bloomberg reported that Crusoe CEO Chase Lochmiller believed the recent sell-off targeting emerging cloud service providers was an “overreaction.”
02
Chase Lochmiller said that competitor CoreWeave had secured some “very good deals” and was currently in a fairly strong position.
03
The report said that CoreWeave’s bonds had fallen to distressed levels this month and its share price had declined by more than 30%。
04
Crusoe said that its AI cloud-computing business continued to face strong and broad-based demand.
05
Crusoe participated in the development of the flagship data center for the OpenAI and Oracle Stargate project in Texas and provided AI cloud computing.
06
Crusoe completed financing of more than 3000000000 USD last month, at a valuation of approximately 30000000000 USD。
07
people familiar with the matter previously said that some technology companies had doubts about whether Crusoe could bring large data centers online and keep them operating.
08
Oracle and OpenAI decided earlier this year not to lease additional capacity at Crusoe’s Abilene, Texas project, and the space was subsequently taken over by Microsoft.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
The news mainly contains two parts:Crusoe CEO defending AI’s cloud market and CoreWeave; the report also listed CoreWeave’s debt and share-price pressure, as well as Crusoe market concerns about data-center operations.
Why it matters to readers
It also presented AI market concerns including infrastructure demand, financing pressure, and data-center execution capabilities, but some content consisted of statements by company executives or people familiar with the matter.
AI Cloud companies must not only secure customers and computing demand, but also raise funds, build, and continuously operate large data centers.
Risks and unknowns
CoreWeave“Being in a fairly strong position” is competitor CEO’s view and is not equivalent to CoreWeave’s official performance or financing update.
The report did not provide CoreWeave’s specific customers, amounts, or contract details for the “very good deals” it mentioned.
The “people familiar with the matter” were unnamed, and the concerns about data-center operations lacked an official response in the original report.
The report did not specify the data source or time period for CoreWeave’s bonds falling to distressed levels and its share price declining by more than 30%.
Related Developments
Loading event timeline…
Related concepts
AI Cloud Computing Capacity
This term is not in the glossary yet. Browse related concepts in the glossary.