Analysts revamp forecast for Nvidia-backed AI stock
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Analysts revamp forecast for Nvidia-backed AI stock originally appeared on TheStreet.
I have a virtual private server with several services running on it. It has replacements for Google Drive, Whatsapp, and Github (or Gitlab). Getting a sufficiently good internet connection that would allow me to use a real (on-premise) machine instead of a virtual one is very difficult where I live.
I've been maintaining this server without any (serious) problems for a couple of years. However, in the past few months, the situation has changed, for the worse.
Nothing brings me more joy than an occasional email from my VPS provider telling me that my server's CPU usage has been averaging at 98% for the last 2 hours. My server, which was almost invisible for a very long time, has become a target of scrapers and scanners.
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I am not alone in having this issue. Many prominent open-source projects had to protect themselves, too, and recently they started using "Anubis" for this. (Not the malware with the same name)
Why the sudden change, you might ask? Well, an increasing number of companies think they will be the ones to create this 'incredible artificial intelligence.' So, they are scraping any website, regardless of whether its data is relevant and reliable. The more data they can collect, the better, seems to be the prevailing modus operandi. And once they're done collecting, throw everything into the blender and hope for the best.
AI training "blender" as a service
What if you are a little startup, with the aforementioned goals of writing incredible AI, and you've done the previous step of collecting the data, and now you just need that blender? Perhaps you have some investor money, but can't build that blender yourself. After all, Graphics cards used for AI training cost an arm and a leg.
This is where CoreWeave (CRWV) comes in.
Just like the VPS providers that enable people like me who can't use real machines for their servers to use their servers instead, CoreWeave enables companies that can't afford AI servers to do their AI training on its GPU mega clusters.
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Considering that the company’s business model is “renting” Nvidia (NVDA) graphics cards, it is not surprising that the company has become Nvidia’s largest holding, making up more than 78% of Nvidia’s disclosed portfolio.
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CoreWeave released its earnings report for Q1 2025 on May 14th. Here are the highlights: