CoreWeave: 2027 GPU renewals could add ~$4B annualized revenue, analyst skeptical
zephyr_z9 · x · 2026-11-11
CoreWeave's earnings call revealed striking economics on its older GPU fleet, which zephyrz9 shared while questioning its sustainability.
Key figures (from the call transcript):
- Ampere/Hopper rental pricing rose 30-50% QoQ in Q3, above original contract prices; older GPUs remain compelling inside a reliable scaled cloud, with multi-year commitments extending beyond depreciation lives and boosting later-year margins.
- Over 130,000 GPUs come off contract in 2027, plus roughly 170,000 more in 2028.
- The company claims a robust customer pipeline: at current pricing, 2027 renewals alone would generate nearly $4B of incremental annualized revenue with no extra CapEx, growing to almost $10B including 2028 renewals; slower sector datacenter construction would keep GPU pricing elevated, favoring first movers.
The pushback: zephyrz9 finds it hard to believe Ampere/Hopper can command such premiums in 2027/28 once Rubin and Rubin Ultra are in full production — the only scenario where that holds is if datacenter construction slows sharply for regulatory reasons.
Related event: CoreWeave Revenue Soars 168% to $3.66B as Net Loss Widens Sixfold(3 posts)→
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