The skeptics label today\u2019s AI market as \u201ccircular,\u201d<\/a> arguing the flow of money between chip manufacturers, cloud providers, and AI startups as clear evidence of a bubble that\u2019s feeding itself.<\/p>\n Intrator feels that categorization misses the point entirely. Many see the current setup as financial engineering. In reality, it\u2019s just logistics.<\/p>\n At the Fortune Brainstorm AI conference<\/a> in San Francisco, Intrator said that the \u2018closed-loop cooperation\u2019 among AI businesses is actually just a historic supply-chain shock.<\/p>\n Computing power is scarce, and so is energy, while infrastructure typically takes years to build.<\/p>\n In essence, it\u2019s a natural response for companies to coordinate and avoid retreating into silos when demand surges.<\/p>\n That level of coordination may look uncomfortable to outsiders, but to operators in the system, it\u2019s mostly just a matter of survival.<\/p>\n At its core, CoreWeave is a specialist.<\/p>\n More Tech Stocks:<\/p>\n It quickly became the go-to GPU-first cloud provider, tailor-made for AI businesses that need Nvidia<\/a>(NVDA<\/a>) compute now, instead of waiting for months.<\/p>\n That entails everything from purpose-built clusters, swifter networking, and tooling that\u2019s optimized for training and running AI models at scale.<\/p>\n That\u2019s why CoreWeave is called a \u201cneocloud\u201d giant<\/a>.<\/p>\n So it isn\u2019t competing head-on with Amazon Web Services, but instead it\u2019s filling the gap when big hyperscalers run out of capacity as demand continues climbing.<\/p>\n Investors are rewarded for that focus.<\/p>\n For perspective, CoreWeave went public at $40 in March 2025, and its stock has since risen to the mid-$70s, approximately 90% above its IPO<\/a> price.<\/p>\n CoreWeave isn\u2019t alone.<\/p>\n Nebius Group has followed a similar path and ended up being the best-performing software stock, up nearly 229% year-to-date<\/a>.<\/p>\n Related: Cathie Wood drops $1.3 million on healthcare stock<\/a><\/p>\n It\u2019s important to note that it didn\u2019t rally on hype alone.<\/p>\n Nebius landed major hyperscaler-scale contracts<\/a> that effectively reset its demand outlook, including a massive $17 billion deal with Microsoft and a $3 billion, five-year agreement with Meta Platforms (META<\/a>).<\/p>\n Story Continues <\/p>\n Growth followed.<\/p>\n Nebius posted triple-and even quadruple-digit year-over-year revenue gains, bumping its guidance, while giving momentum investors fresh fuel.<\/p>\n Intrator argues that much of the criticism around today\u2019s AI market is unfounded.<\/p>\n At Fortune Brainstorm AI, he argued that AI computing is concentrated in the hands of a handful of players.<\/p>\n That\u2019s not because of any deal-making moves, but because the infrastructure is incredibly tough to build.<\/p>\n In practical terms, only a few businesses have access to the most performant chips, energy, and data centers required to run them at scale.<\/p>\n That scarcity compels tech players to focus on coordination.<\/p>\n Intrator described it as,<\/p>\n Additionally, the constraint is not limited to servers.<\/p>\n Intrator recalled having a conversation with a mining executive who said that the pressure extends \u201ctwo levels deeper,\u201d into the copper and raw materials needed in expanding capacity.<\/p>\n Also, Intrator says that demand remains as relentless as ever, dismissing any talk of sluggishness in its top-line.<\/p>\n The fiercest takedown of the AI trade came from the \u2018Big Short\u2019 Michael Burry<\/a>, famous for calling the 2008 financial crisis early, focusing on the numbers underneath the boom.<\/p>\n Related: Popular analyst sets bold 2026 price target on Nvidia stock<\/a><\/p>\n Burry\u2019s first target is creative accounting.<\/p>\n He made the case that hyperscalers are stretching depreciation schedules for semiconductors and servers, making their earnings look a lot smoother.<\/p>\n Although it doesn\u2019t alter cash flows, it can make margins appear more stable and valuations with lofty valuations easier to defend.<\/p>\n According to Schwab, the top 10 stocks<\/a> account for nearly 40% of the S&P 500<\/a>\u2019s entire market cap<\/a> (the top five are about 27%) as of late 2025.<\/p>\n Then there\u2019s the circular financing issue.<\/p>\n Burry described give-and-take deals where the money\u2019s simply bouncing between chipmakers, cloud specialists, and model builders, questioning the veracity of the current demand.<\/p>\n In one blunt line, he stated that,<\/p>\n How Burry escalated the critique in 2025:<\/p>\n September 30, 2025: Scion\u2019s Q3 13F showed Burry swung big with massive put options <\/a>on 5 million shares of Palantir<\/a> (roughly $912 million notional) and 1 million shares of Nvidia (about $186.6 million notional).<\/p>\n October 27: Burry stated that he would liquidate positions and return capital to investors.<\/p>\n November 3\u201319: He continued to sharpen warnings around depreciation and \u201cdealer-funded\u201d AI demand.<\/p>\n Nvidia \u2014 CoreWeave: Nvidia placed a massive$6.3 billion cloud-capacity order<\/a> while agreeing to buy any unsold capacity through 2032, backstopping CoreWeave\u2019s GPU buildout.<\/p>\n OpenAI \u2014 CoreWeave: OpenAI\u2019s initial agreement was worth nearly $11.9 billion<\/a>, expanding total contract value to nearly $22.4 billion.<\/p>\n Google \u2014 Anthropic: Google added over $1 billion in fresh capital along with earlier investments, reinforcing Big Tech\u2019s role.<\/p>\n Microsoft \/ Nvidia \u2014 Anthropic: Microsoft (up to $5 billion) and Nvidia (up to $10 billion) supplied capital as Anthropic committed to buying $30 billion of Azure compute.<\/p>\n Wall Street<\/a> SPVs: A recent Reuters report revealed that Meta, Oracle, xAI<\/a>, and others have shifted more than $120 billion of AI data-center spending into SPVs, keeping debt off their balance sheets.<\/p>\n AMD<\/a> \u2014 OpenAI: OpenAI signed a major multi-year deal to deploy a massive 6 gigawatts of AMD Instinct GPUs<\/a>, making AMD a critical partner.<\/p>\n Related: Nvidia makes boldest move yet, and the fallout begins<\/a><\/p>\n This story was originally published by TheStreet<\/a> on Dec 28, 2025, where it first appeared in the Technology<\/a> section. Add TheStreet as a Preferred Source by clicking here.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"\u201cViolent change in supply demand.\u201d That\u2019s how Coreweave (CRWV) CEO Michael Intrator feels about what\u2019s happening in the…\n","protected":false},"author":2,"featured_media":377062,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,181,507,184357,145924,112213,4321,74],"class_list":{"0":"post-377061","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-intrator","12":"tag-michael-burry","13":"tag-michael-intrator","14":"tag-nvidia","15":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/377061","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=377061"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/377061\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/377062"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=377061"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=377061"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=377061"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} CoreWeave CEO Michael Intrator says AI\u2019s turmoil isn\u2019t engineering, it\u2019s a violent supply-chain shockPhoto by SOPA Images on Getty Images <\/p>\n