Spotlight on CoreWeave: The Pure GPU Play [NASDAQ: CRWV]

Written By Real People (all the typos and poor grammar are ours. Don’t blame the robots).

By Matthew Gould

We talk deep-tech for data centres around the coffee machine, or sake bar with a varied crowd of business leaders; industrialists, savvy investors and the odd unicyclist. In these dorm-room debates on the future of compute folks often cite the latest headlines from Microsoft, Google, Tesla or AWS. Rarely though do our friends reference CoreWeave. We think this is a little odd. Given CoreWeave’s growth and ‘AI-First’ strategy it is likely to be one of the major buyers of the sort of deep-tech startups our ICM HPQC fund invests in; they should be first to mind. We track them. We hang. So, in this update, I thought we’d dedicate a few column inches to CoreWeave, give a sense of what they are up to, and point out how they may be more significant than the other majors across the next decade. 

In the storied world of data centre giants—Microsoft, Google, AWS—the newly public CoreWeave feels like an outsider disrupting a decades‑old club. Originally born as “Atlantic Crypto” in 2017, mining Ethereum on Nvidia GPUs, CoreWeave pivoted hard into AI compute in 2019. Think of them as a scrappy GPU specialist blazing rails under OpenAI’s models, backed by Nvidia, delivering world‑class infrastructure—but also carrying debt weight and burn as they treat AI compute services as a land grab (it really is). CoreWeave’s business model could be simply stated as ‘all-in’ on AI.

Fast‑forward to their Q1 2025 results - revenue exploded 420% YoY to US$981.6 million, posting a staggering 62% adjusted‑EBITDA margin - proof that purpose‑built AI infrastructure can outrun even hyperscaler legacy players. If that wasn’t stimulating enough the data suggests they are stealing Microsoft’s OpenAI’s lunch.

In early June, CoreWeave also clinched a marquee US$11.9B five‑year contract to provide dedicated capacity to OpenAI, with OpenAI taking a US$350M equity stake at IPO time.

Why does this matter? Microsoft had been OpenAI’s exclusive cloud partner—investing billions since 2019. As OpenAI broadens compute sources and engages CoreWeave directly, the latter finds itself not just filling spare capacity but stealing the compute crown from its former primary customer. Sweet.

In effect, CoreWeave has become the overflow / primary alternative for OpenAI’s compute beyond Microsoft Azure. CoreWeave’s order backlog dwarfs many smaller players—and its exclusive OpenAI contract means a major strategic wedge against hyperscalers’ AI‑vending business.

Ooooohhh, pretty: New CoreWeave data centre facility in Plano, Texas

CoreWeave’s deal with OpenAI is a game‑changer. Beyond the pledge of US$11.9B compute over five years, the equity investment cements a compute symbiosis: OpenAI gets high‑performance GPU throughput unmatched by the broader hyperscalers, and CoreWeave gets guaranteed utilisation and capital support. CoreWeave remains the only non‑hyperscaler with large‑scale (>10 k H100) clusters rated “Platinum” by our good friends at SemiAnalysis —giving it technical credibility to underpin model‑training surges.

The HPQC Fund invests in early-stage deep technology for the data centres that the majors will be building in 2030. To us, strategically this is why CoreWeave matters now:

Compute Demand Outpaces Legacy Capacity. This is our core thesis. CoreWeave substantiates it (did we mention the stellar profits?) As OpenAI moves into the GPT‑5 era training regimes, hyperscalers can’t—or won’t—scale at margin fractions. CoreWeave’s specialised platform absorbs that overflow, offering performance‑tuned, GPU‑only clusters.

They will likely acquire start-ups such as the ones our HPQC fund invests in because they need to remain ecosystem dominant. What? It’s all about Ecosystem Lock‑In. With Nvidia’s backing (including strategic equity), CoreWeave gets cutting‑edge chip access—making it a de facto partner for any next‑gen AI lab. Others fail at that hurdle.

Look – we are not on a march to promote CoreWeave – we are just saying - add their name and brand to your list of players in the space when you next pontificate on the future of compute. We certainly do. [Also, their CEO is the most non-Tech-Bro dude you could meet. Check out this interview. And they are based in New Jersey. Not The Valley. Solid].

Matthew Gould

Portfolio Manager, ICM HPQC Fund

June 2025

Important Note

The information in this article should not be considered an offer or solicitation to deal in ICM HPQC Fund (Registration number T22VC0112B-SF003) (the “Sub-fund”). The information is provided on a general basis for informational purposes only and is not to be relied upon as investment, legal, tax, or other advice. It does not take into account the investment objectives, financial situation, or particular needs of any specific investor. The information presented has been obtained from sources believed to be reliable, but no representation or warranty is given or may be implied that it is accurate or complete. The Investment Manager reserves the right to amend the information contained herein at any time, without notice. Investments in the Sub-fund are subject to investment risks, including the possible loss of the principal amount invested. The value of investments and the income derived therefrom may fall or rise. Past performance is not indicative of future performance. Investors should seek relevant professional advice before making any investment decision. This document is intended solely for institutional investors and accredited investors as defined under the Securities and Futures Act (Cap. 289) of Singapore. This document has not been reviewed by the Monetary Authority of Singapore.

ICM HPQC Fund is a registered Sub-fund of the ICMGF VCC (the VCC), a variable capital company incorporated in the Republic of Singapore. The assets and liabilities of ICM HPQC Fund are segregated from other Sub-funds of the VCC, in accordance with Section 29 of the VCC Act.