CoreWeave Proves Old Nvidia Chips Can Still Deliver Big Returns

CoreWeave, a cloud infrastructure provider, has shown that older Nvidia chips can still be lucrative for its customers. The company recently signed a customer contract for Nvidia's A100 GPUs that extends through 2029, nearly a decade after the chip debuted.

This is not an isolated case, according to CoreWeave management. CFO Nitin Navin highlighted the longevity of this deal, pointing out that the contract 'extends into 2029 at an attractive price' for a GPU introduced in 2020.

CEO Michael Intrator expanded on this point, saying that it provides insight into how AI infrastructure can be monetized over a longer period than many investors assume. He argued that mature GPUs can continue to attract customers if the workload and pricing remain attractive.

CoreWeave's strategy also includes renewing or redeploying existing GPUs after their initial contract has ended, which generates additional revenue on top of returns already earned during the original lease.