A Surprising New Rival Is Threatening CoreWeave (and It’s Not Best Known as an AI Cloud Company)
CoreWeave stock has been under pressure lately. Investors are concerned about the company’s heavy debt load, plans for additional large capital expenditures to continue building out its artificial intelligence (AI) data center footprint, and surging interest expenses.
Making matters worse, the company is facing ramping competition in the neocloud space. Space Exploration Technologies (NASDAQ: SPCX) built its name around its reusable rocket technologies, orbital launch services, and its Starlink satellite communications network, but the company is also rapidly scaling its neocloud business. That could create additional pressures for CoreWeave.
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