Digital infra/STRUCTURE Weekly Update: AI Infra booms as CoreWeave goes public, CapEx soars

CoreWeave went public, raising $1.5 billion, with NVIDIA investing $250 million; concerns remain about AI demand and its long-term impact on infrastructure.

OpenAI is expanding its infrastructure with Oracle Cloud, including a large-scale project in Texas, supported by a $40 billion funding initiative called Project Stargate.

Hyperscale cloud remains the primary driver of the sector, growing at nearly 30% year-over-year, with Chinese cloud providers like Alibaba and Tencent increasing CapEx investments.

Concerns about an AI bubble and overbuilding are emerging, particularly in China, as hyperscale demand continues to grow.

Hyperscalers are actively pursuing M&A to enhance public cloud capabilities, with Google Cloud acquiring security provider Wiz for over $30 billion.

Companies like Crusoe are shifting focus from cryptocurrency to AI infrastructure, divesting assets and securing funding for hardware procurement.

Legacy services are declining, while next-generation offerings are key to sustaining growth in a transforming sector.

The sector is evolving with developments in NVIDIA’s ecosystem, international master-planned models, and continued demand for hyperscale and edge infrastructure.