CoreWeave has raised over $25 billion since 2023, primarily through debt, and went public in March 2025 at $40 per share. By mid-2025, the company reported $14.6 billion in technology assets, mainly GPUs and servers, against $14.2 billion in debt. While the market perceives CoreWeave as a high-growth cloud player, its financial structure resembles a 1990s independent power producer, relying heavily on leveraging assets with borrowed funds. The core of CoreWeave's business model is capitalizing on a gap in GPU compute market infrastructure, specifically the lack of a liquid forward curve. This absence makes financing more expensive and creates barriers for institutional investors. CoreWeave has structured its financing through Delayed-Draw Term Loan (DDTL) facilities, which have seen a significant drop in borrowing costs over 18 months — from around 15% to 8-9%. However, this cost remains high compared to investment-grade corporate debt due to the inherent risks associated with GPU financing, such as rapid depreciation and uncertain residual values. Lenders like Blackstone and Morgan Stanley are cautious, pricing in these risks with a premium. Without a standardized market for GPU pricing, lenders face uncertainty when estimating asset values over time. A hypothetical model illustrates that financing costs for a $30 million GPU purchase could be $4 million higher in a market lacking infrastructure. As CoreWeave gains experience and as GPU price transparency improves, lenders are becoming more comfortable, evidenced by tighter spreads in recent deals. Recent movements in the market suggest a potential shift. Companies like Ornn AI are working on creating regulated exchanges for GPU compute derivatives, which could establish a forward curve similar to oil futures. If this happens, CoreWeave could either benefit from increased institutional investment or face competition as the market matures. Their current advantage stems from being first in a developing market, not from a sustainable technological edge.