CoreWeave is exploring the use of financial derivatives as a potential hedge against future declines in memory and storage chip prices, according to people familiar with the matter. According to Jin10, the AI cloud computing company is considering this unusual step as cloud service providers become more tightly linked to a volatile chip market amid the AI boom.
To secure supply, cloud operators including CoreWeave have signed long-term agreements with memory and storage chip makers such as Micron and SanDisk. Many of these agreements provide suppliers with price floors for DRAM and storage chips.
The arrangement was described as a double-edged sword: it can protect chip manufacturers during market downturns, but it can also expose cloud service companies such as CoreWeave to risk. If prices fall, the companies could be forced to keep buying at prices far above prevailing market levels.
CoreWeave executives have discussed how to hedge the risk that future price declines could lead to inventory devaluation for memory chips. The discussions are at an early stage, and the company has not carried out any hedging transactions. Options under discussion include put options and other potential derivative instruments.
AI TRENDS | CoreWeave Explores Derivatives to Hedge Potential Memory and Storage Chip Price Declines
2026-07-14 23:57:03
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