AI cloud computing company CoreWeave is exploring the use of financial derivatives as a potential hedge against a future drop in memory and storage chip prices, according to a person familiar with the matter.
The unusual move underscores how deeply the AI boom has entangled cloud providers with the volatile chip market. To lock in supply amid soaring demand, thanks to a surge in AI infrastructure construction, cloud operators including CoreWeave have signed long-term agreements with memory and storage makers such as Micron and SanDisk.
