Nvidia, CoreWeave, and Nebius: Inside the Circular Financing of the GPU Boom

I explore how neoclouds like CoreWeave and Nebius are fueling the AI boom through massive hyperscaler contracts with Microsoft and Meta. While these partnerships offer rapid access to Nvidia GPUs and better utilization, they rely on circular financing that shifts capital expenditure to operating expenses. This strategy raises red flags about profitability and debt sustainability as these companies race to convert power contracts into active revenue.

"Microsoft and Meta’s total commitments extend up to $122.2 billion – for perspective, that is ~90% of the TTM revenue of AWS being allocated towards neoclouds over long-term capacity deals."