- Intrator said that the company has made “an intentional decision” to scale its infrastructure to meet client demand while understanding that margins would take a hit.
- Meanwhile, Michael Burry said on Friday in a Substack post that Coreweave was designed to lose money.
- The CEO’s remarks come as CRWV stock plummeted in Friday morning trade after the company announced capex for the year that was more than double from 2025 levels.
CoreWeave Inc. (CRWV) CEO Mike Intrator justified the company’s massive capital expenditure plans for 2026, citing growing market demand for compute and large orders.
“Our clients are increasing the demand signals that they are giving us,” Intrator told CNBC in an interview on Friday, adding that demand for infrastructure has been “relentless” amid a shift into enterprise and sovereigns.
The CEO’s remarks come as CRWV stock plummeted in the morning trade after the company announced capital expenditure plans for the year that were more than double of 2025.
“I understand the concerns that people have as they see us allocating a massive scale of money to this market, but the truth of the matter is, our backlog is enormous,” he said.
CRWV shares were down more than 18% at the time of writing.
Conscious Choice
Intrator said in the interview that the company has made “an intentional decision” to scale its infrastructure to meet client demand, while understanding that margins would take a hit. “This is a once-in-a-generation moment,” he said.
“We are constrained by our capacity to deliver more capacity to the market,” he added, explaining that every dollar of investment made today would result in more dollars earned through compute revenue over the next five years.
CoreWeave posted fourth-quarter (Q4) earnings on Thursday, reporting a wider-than-expected loss per share. The company projected capex of $30 billion to $35 billion in 2026, compared to $14.9 billion spent in 2025.
Burry’s Take
“The Big Short” investor Michael Burry said on Friday that CoreWeave was designed to lose money. In a Substack note, Burry said, “CoreWeave exists as an off balance sheet SPV designed to lose money. Except the enthusiasm for spending on this bubble got so extreme they took it public.”
Burry compared this to American multinational telecommunications company Level 3 Communications. “CoreWeave is worse because LVLT infrastructure did not depreciate anywhere near as fast. Which makes Coreweave worse,” he said.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around CRWV stock increased from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours amid ‘extremely high’ message volumes.
One bullish user said they were convinced about the CEO’s rationale.
Shares of CRWV have gained more than 98% in the past year.
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