CoreWeave's business model explained: Why investors are worried

In the Loop Host Ejaaz Ahamadeen breaks down exactly how CoreWeave's (CRWV) business model works, the financial challenges facing the AI infrastructure company, and why concerns about its ability to manage debt are growing. Ahamadeen examines an estimate suggesting CoreWeave faces a 55% probability of default over the next five years, and what that could mean for the company. Video Transcript 00:00 Speaker A Think of CoreWeave as a landlord. They purchased 51 apartments. The apartments in this case are data centers. 00:09 Speaker A They're very expensive, very cost intensive. So they borrowed money to be able to purchase these apartments.