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Newsletter: We need to talk about CoreWeave, the first big IPO of the generative AI bubble, with a speculated $35bn valuation, burdened by ruinous debt, impossible-to-meet capacity obligations, and a data center partner that's never built any AI compute. www.wheresyoured.at/core-incompetency/

CoreWeave has about $8bn in debt, and its indebtedness will undoubtedly only increase in years to come. And, like OpenAI, it loses more money than it makes, spending $1.43 to make $1, and needs tens of billion to keep growing. They feel built for collapse. www.wheresyoured.at/core-incompetency/

CoreWeave is a terrible business, with 77% of its revenue from two companies (Microsoft/NVIDIA), living and dying on the idea that generative will both is and will continue to be a high-growth business. Their business suggests gen. AI doesn't have legs. www.wheresyoured.at/core-incompetency/

CoreWeave's numbers deeply concern me - they're existentially tied to the idea that generative AI will become both a massive, revenue-generating and remain an incredibly compute-intensive industry. Microsoft's data center pullback and DeepSeek beg to differ. www.wheresyoured.at/core-incompetency/