CoreWeave CEO Brandon McGruder described an environment of "insatiable" demand, declaring 2026 "broadly sold out." The company projects exiting 2026 with $17 to $19 billion in ARR and 2027 with over $30 billion. Growth is underpinned by a $67 billion backlog featuring increasingly long-term contracts weighted toward five years. McGruder highlighted CoreWeave’s technical differentiation in operating parallelizable workloads and its expanding software ecosystem, including a storage business now exceeding $100 million ARR. He addressed capital allocation, detailing a $30 to $35 billion CapEx plan financed through asset-backed structures, while reaffirming a six-year useful life for GPU assets.

Key Takeaways

• Explosive ARR Growth: CoreWeave ended 2025 with $6.7B in ARR and expects to exit 2026 at $17–$19B. For 2027, it projects over $30B in ARR.
• Massive Backlog: The company reported a revenue backlog of "$67 billion," driven by customers seeking longer terms; contracts are now "five year weighted," up from 3-4 years previously.
• CapEx & Financing: Management guided to "$30 to $35 billion" in CapEx, financed via AssetCo structures; once stabilized (months 4-60), deployments generate a "25% contribution margin" to the parent company.
• Supply Chain & Margins: While memory and component costs are rising, these serve as pass-throughs to the customer; the primary bottleneck is skilled labor (e.g., electrical engineers) rather than power generation.
• Asset Useful Life: McGruder reaffirmed a "six years" useful life for GPUs, noting that pricing for older A100 chips "actually increased" in 2025 due to strong inference demand.
• Software Traction: The company’s storage product has scaled to "well north of 100 million in ARR" with a "greater than 80% attach rate" for clients generating over $1 million in revenue.
• NVIDIA Exclusivity: CoreWeave remains "client led" and currently runs only NVIDIA infrastructure because they "aren't getting requests for other types of silicon" from customers.

Q&A

Keith Weiss (Morgan Stanley): Where is this "insatiable" demand coming from, and how durable is it looking out to 2030?

• Brandon McGruder: The demand is "truly overwhelming," with 2026 "broadly sold out." Enterprise adoption is scaling rapidly, and customers are demanding longer contract durations, moving from three-year deals previously to now "five year weighted contracts" to secure infrastructure.

Keith Weiss (Morgan Stanley): Is there real differentiation in CoreWeave's offering, or is demand simply a result of available capacity?

• Brandon McGruder: Differentiation lies in the proprietary software stack designed for "parallelizable workloads" at supercomputer scale. Clients, including blue-chip enterprises, return to CoreWeave because the infrastructure is "not fungible" and requires specialized operational capabilities to remain stable and performant.

Keith Weiss (Morgan Stanley): How do you plan to finance the "$30 to $35 billion in CapEx," and how does this investment impact near-term margins?

• Brandon McGruder: Financing occurs at the AssetCo level where investor demand is strong. While the "three month investment period" for new deployments weighs on near-term margins, stabilized assets generate a "25% contribution margin" to the parent company, creating a robust revenue stream over the life of the contract.

Keith Weiss (Morgan Stanley): How do rising component costs, such as memory prices increasing significantly, impact your model?

• Brandon McGruder: Memory is a "very small component" of the total node cost. The company focuses on securing supply rather than price; increased costs for components or electricity are "passed on to the end consumer," who accepts regional pricing variances.