CoreWeave CEO Michael Intrator defended the company’s controversial "circular deals" at Fortune's AI Brainstorm summit. Intrator characterized the transactions as industry collaboration, explicitly rejecting the label of financial engineering.
CoreWeave leverages its extensive inventory of Nvidia GPUs to secure necessary financing. This strategy, Intrator stated, pioneers a new business model for cloud computing.
The defense follows growing scrutiny from critics, including analysts and short-sellers. These critics argue that such deals across the AI industry risk blurring the line between genuine demand and recycled capital flows.
Intrator also addressed the stock's recent price volatility. He characterized the fluctuations as a normal aspect of a company undergoing rapid scaling and reshaping the economics of AI infrastructure.