From Reuters, July 14:
- CoreWeave has not executed any hedges and discussions remain at an early stage, the source said
- Long-term deals with Micron and Sandisk guarantee price floors for DRAM and storage chips
- SK Hynix and Micron expect fully ramped new manufacturing capacity in early 2028
AI cloud computing company CoreWeave is exploring the use of financial derivatives as a potential hedge against a future drop in memory and storage chip prices, according to a person familiar with the matter.
The unusual move underscores how deeply the AI boom has entangled cloud providers with the volatile chip market. To lock in supply amid soaring demand, thanks to a surge in AI infrastructure construction, cloud operators including CoreWeave have signed long-term agreements with memory and storage makers such as Micron and SanDisk.Many of these deals guarantee suppliers a price floor for dynamic random access memory (DRAM) and storage chips.But the arrangement cuts both ways: it protects chipmakers from a downturn, but leaves cloud companies like CoreWeave exposed if prices fall and they are stuck paying well above the going rate.As a result, CoreWeave executives have held discussions about ways to hedge against a slide in memory chip stocks that would occur if prices drop in the future, the source said....
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