Seawolf Capital Shorts CoreWeave (CRWV), Citing Financing Costs and GPU Depreciation Risk

Seawolf Capital, the firm co-founded by "The Big Short" investor Vincent Daniel, has taken a short position in AI cloud provider CoreWeave (CRWV), betting the company's business model hinges on continued access to low-cost capital. Daniel disclosed the position in a Substack post, saying the trade is not a bearish call on AI but a wager on CoreWeave's financing ability and cost of capital. Seawolf compared CoreWeave, which rents out Nvidia GPU-based computing power, to asset lessors Transocean (RIG) and Aercap (AER), both of which the firm prefers and holds. Daniel argued GPUs have shorter economic lives than drilling rigs or aircraft and face expanding supply of competing chips, undermining CoreWeave's advantage. Daniel pointed to a projected 2027 free cash flow shortfall and balance-sheet leverage, particularly tangible common equity as a share of total assets. He said investors must believe CoreWeave can raise tens of billions of dollars on shareholder-friendly terms, adding the analysis remains at an early stage. Earlier this month, partner Danny Moses likened CoreWeave to WeWork (WE).