CoreWeave looks to Wall Street to hedge memory chips, an asset with no market
Memory chips have roughly doubled in price this year, a squeeze that has emptied Apple’s shelves and rewritten data centre budgets. CoreWeave is now working out what to do if they get cheaper.
The AI cloud company is exploring financial derivatives as a hedge against a future drop in memory and storage chip prices, Reuters reported on July 14, citing a person familiar with the matter. The talks are early, no hedges have been executed, and no CoreWeave executive has discussed them publicly. The account rests on a single unnamed source.
The exposure is a by-product of guarding against the opposite problem. Cloud operators including CoreWeave have locked in supply through long-term agreements with memory and storage makers such as Micron and SanDisk, many of which guarantee the supplier a price floor on DRAM and storage chips.
That shields the chipmaker from a downturn and leaves the buyer paying well...
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