Seawolf Capital says CoreWeave’s infrastructure spending could leave it with a projected 2027 free cash flow gap and require tens of billions of dollars in financing.
Seawolf Capital co-founder Vincent Daniel said the firm assessed how CoreWeave’s business operates before taking the short position. Customers pay for access to CoreWeave’s AI computing, which runs on high-end graphics processing units (GPUs); the company must keep funding the hardware capacity behind those services.
Leverage is another part of the firm’s case against CoreWeave. The firm sees a risk that faster rival chips could erode GPU values sooner than equipment used in oil drilling, aviation and shipping.
Seawolf Capital said its thesis concerns CoreWeave’s access to capital and the cost of financing, rather than the broader AI trade. EconoTimes previously covered a CoreWeave bond’s yield reaching 15% amid rising borrowing costs.
