Coreweave Generates 5x More Revenue per MW than Galaxy Due to Contract Terms
downingARK · x · 2026-08-18
Critiquing a chart on AI neocloud efficiency, downingARK highlights that contract duration significantly distorts metrics. Galaxy provides LPS (land, power, shell) to Coreweave over 15-year terms, while Coreweave rents infra to hyperscalers for 5 years. Thus, annualized monetization per MW is a better metric than backlog per GW. Adjusted figures show Galaxy earns $2.2M/MW annually, compared to Coreweave's $10M/MW (based on 2026 guidance of $19B run rate on 1.85 GW), indicating Coreweave's superior capital efficiency at its stack level.
More from Venture
- Case study: UnifyGTM cut model costs by 90-95% two weeks before launch — LangChain · 2026-08-19
- Market Take: Sora Didn't Boost Memory, But Gen Video Will — toptickcrypto · 2026-08-19
- Perplexity India Revenue Rise Questioned: Is It Growth or Forgotten Subscriptions? — HaktanSuren · 2026-08-19
- Agentic Law Firm Foremark Legal Raises $6M Seed — EXM7777 · 2026-08-19
- Lenny Releases the 'Lenny 100' List: Anthropic Valued at $965B — lennysan · 2026-08-18
- R1 Acquires Humata Health to Integrate AI Prior Authorization Tech — HealthcareAIGuy · 2026-08-18