Michael Intrator

Well, surprise, surprise.

And another issue was Michael Intrator, the CEO of CoreWeave.

He came out and of course he sent a letter around and these internal memos always take me back to Dick Fould of Lehman Brothers, who was sending out internal memos, reassuring everybody right until the day before Lehman's closed its doors.

And Michael Intrator said, just said the market doesn't understand us, right? And that is such a red flag because the market's the one who's dictating what you pay for your debt, Michael, I'm afraid.

So you need to do a better job of making the market understand you.

Yeah, the market's never wrong.

The stock dropped about 15% on the news of McBee giving the game away.

The three Corweave founders, McBee, Michael Intrator and Brian Venturo, have sold a total of $3.3 billion in stock since the IPO.

They'd sold another $450 million before the IPO.

The company told Bloomberg, quote, they're making personal financial planning decisions that any responsible founder with concentrated holdings would make, unquote.

Evercore maintained its outperform rating, writing that markets appear to be extrapolating a higher secondary market bond yield as evidence the business model has stopped working, which they don't think is the case.

CoreWeave CEO Mike Intrator told employees internally that the company's deal backlog more than covers its debt obligations.

But here's the structural backdrop that makes this more than a single company's story.

On the same day CoreWeave was collapsing, Gartner released an analysis saying that about 80% of neoclouds, the new generation of AI-dedicated cloud companies, could shut down by 2030, and that more than $3.5 trillion of AI infrastructure spending could face impairment if AI providers maintain their current pace of investment.

They've raised over $35 billion.

We had, uh, the founder, we had the founder, Michael Intrator, on the All-In podcast back in March, in which he explained to me on the All-In interview show what he called the box.

Let's roll that tape and get Chamath's thoughts.

How does all that debt work? That is something that you guys specialize in.

That, to me, is very murky.

Hey, what, what you just said, uh, you're channeling, uh, I believe you're, you're Ina Hochstein, right? You saw that, that, that headline that the Broadcom CEO-

Yeah

... likened AI investing to be in a casino where investors set high expectations, um, but don't have a full picture necessarily in his view of what they're investing in.