Crusoe CEO says the AI cloud sector has been oversold, expresses strong support for CoreWeave.
2 hours ago
According to Bloomberg, Chase Lochmiller, CEO of AI compute supplier Crusoe, said at the Bloomberg Invest conference in Dallas that the recent sell-off targeting emerging cloud service providers is "overreacted". Rival CoreWeave has struck some "very good deals" and is in a solid position currently. CoreWeave has been at the center of market concerns over the AI infrastructure boom and its massive debt financing. Its bonds have fallen to distressed levels this month, and its stock price has dropped more than 30%. Lochmiller noted that Crusoe’s AI cloud compute business still faces strong and widespread demand. Crusoe is involved in developing the flagship Texas data center for the OpenAI-Oracle Stargate project, while also providing AI cloud compute power. The company closed over $3 billion in financing last month, with a valuation of around $30 billion. However, people familiar with the matter previously told Bloomberg that some tech companies have doubts about Crusoe’s ability to get large data centers operational and sustain their operations. Earlier this year, Oracle and OpenAI opted not to lease additional capacity for its Abilene, Texas project, and the space was later taken by Microsoft.
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