CoreWeave reported today. Beat on revenue. Stock tanked 11%. Why?

5B revenue. 894% debt-to-equity. Negative 30B.

This is a GPU rental company. They buy Nvidia chips and rent them out. That's the whole business. And the rental math is broken. H100 rates went from 2.50. Utilization runs 60-70% when the loans assume 80%+. The GPUs die in 1-3 years but they're depreciated over 5-6.

Here's the part nobody wants to talk about. Nvidia funded this. Nvidia has \~$110B invested across neoclouds like CoreWeave, OpenAI, xAI. OpenAI's CFO said out loud that most of the money goes back to Nvidia. It's a circle. Nvidia gives them money, they buy Nvidia chips, Nvidia books 65% revenue growth, market gives them 50x earnings, rinse repeat.

If you consolidated all these GPU rental companies back onto Nvidia's balance sheet where they economically belong, that 56% margin chip company starts looking like an overleveraged equipment leasing business with collapsing rental rates.

Nvidia can't stop either. If they pull funding the neoclouds fail, liquidate GPUs at fire sale prices, and the supply shock kills Nvidia's own demand. They're trapped propping up their own customers.

Lucent did this exact thing in the 90s. 2 in 18 months. Nvidia's exposure is 7x bigger.

CoreWeave is the first domino. Watch the rest.