CoreWeave is renegotiating lease agreements for its Nvidia hardware as a wave of early contracts for its GPU fleet reaches its end. The company estimates that renewing the roughly 300,000 chips coming off contract in 2027 and 2028 at current market rates would add nearly $10B in incremental annualized revenue without requiring any new capital expenditures.
The cloud provider had previously focused on the 2027 cohort of more than 130,000 GPUs, which it said could generate approaching $4B in new annualized revenue that is currently outside the company’s backlog. This growth follows a price surge for older Nvidia Ampere and Hopper GPUs, which rose 30% to 50% in the third quarter, with pricing continuing to climb in the fourth quarter. To lock in capacity, CoreWeave is signing multi-year deals that extend past the chips’ depreciable lives and is charging more than $40M per megawatt a year for short-term capacity.
