Key Points
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If both cloud businesses maintained their current growth rates, it would take seven years for CoreWeave to catch AWS.
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If CoreWeave can eventually become as profitable as AWS is now, it should prove a highly profitable investment for those who buy in at current levels.
Cloud computing is an important segment of the AI race. Many AI companies do not want to manage the data center infrastructure necessary to run their applications, so they rent computing power from cloud providers like Amazon Web Services (AWS) (NASDAQ: AMZN). This is a cost-effective way to obtain a large amount of computing power quickly.
While AWS may be the largest cloud infrastructure provider, with a market share of about 28% at last report, it’s far from the only one. There are many others, including some that specialize in AI computing, like CoreWeave(NASDAQ: CRWV). CoreWeave is a rising star in the cloud computing arena, and is growing far faster than AWS.
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