CoreWeave Inc. chief executive Mike Intrator sees Oracle Inc. as a “formidable competitor” in the artificial intelligence (AI) infrastructure space.
However, the market veteran remains convinced that “software stocks that drives the performance that we’re able to achieve” will differentiate CRWV from rivals over time.
At writing, CoreWeave stock is up nearly 300% versus its initial public offering (IPO) price.
CoreWeave’s strategy is different from Oracle
CoreWeave and Oracle are investing heavily in data center expansion and GPU-powered compute, but Mike Intrator believes his company is redefining what it means to be an AI-first infrastructure provider.
His optimism is clearly reflected in the massive surge in CRWV share price since going public in March. Speaking with CNBC this week, the chief executive described CoreWeave’s strategy as “starting with a blank sheet of paper.”
Unlike Oracle, which integrates AI into its existing enterprise cloud offerings, the AI cloud-computing startup built its software stack from scratch, optimising every layer – from hardware to orchestration – for high-performance compute (HPC) workloads.
We’re not trying to incorporate any legacy technology,” Intrator said. “We’re really just saying, based on all the options in front of us, what is the best solution?
This philosophy has allowed CoreWeave to deliver performance enhancements that resonate with hyperscalers and AI labs alike.
Its infrastructure is tightly integrated with Nvidia’s GPUs, creating a “hand-in-glove” relationship that accelerates model training and inference.
Oracle, by contrast, is leveraging its enterprise pedigree to expand its Oracle Cloud Infrastructure (OCI) segment.
It reported a 41% year-over-year increase in remaining performance obligations to $138 billion, signaling strong demand.
But CoreWeave’s revenue backlog, now at $26 billion, grew 63% in the same period, outpacing Oracle’s growth and underscoring its momentum.
Core Scientific buyout could help CRWV shares
Earlier this week, CoreWeave confirmed plans to buy Core Scientific for about $9 billion to strengthen its presence in the AI infrastructure market.
The acquisition gives CRWV control over 1.3 gigawatts of gross data center power.
This vertical integration eliminates $10 billion in future lease obligations and helps CoreWeave to scale its infrastructure without relying on third-party landlords.
The deal also allows CoreWeave to repurpose Core Scientific’s crypto-mining facilities for AI and high-performance computing (HPC) workloads.
According to Intrator, “Owning this infrastructure de-risks future expansion and enhances operational efficiency”.
Analysts expect the integration to yield $500 million in annual cost savings by 2027.
While Oracle is investing $25 billion in capex this fiscal year, CoreWeave’s aggressive expansion, combined with its software-first approach, suggests a company built for the next wave of AI demand.
Its partnerships with OpenAI, IBM, and Microsoft further validate its position as a go-to provider for cutting-edge compute.
CoreWeave stock is not inexpensive to own
Despite the aforementioned tailwinds, CoreWeave’s valuation remains steep, trading at nearly 30 times sales.
It’s not yet profitable, but analysts expect it to turn a profit within the next two years.
Oracle, meanwhile, offers steadier growth and trades at 30 times forward earnings.
For investors seeking explosive growth in the AI infrastructure space, CoreWeave offers a compelling, if riskier, alternative to Oracle.
Its software stack, strategic acquisitions, and deep integration with Nvidia position it as a frontrunner in the race to power the future of artificial intelligence.
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