CoreWeave proves Nvidia's aging AI GPUs from 2020 can generate profit nine years after deployment, signs A100 contracts into 2029 — power constraints and legacy infrastructure keep old GPUs profitable
CoreWeave reported $2.58 billion in quarterly revenue, up 112% year over year.
CoreWeave, an AI data center provider, has reportedly signed a contract for Nvidia's A100 GPUs that will run until 2029, nine years after the Ampere-based GPU was first released. CEO Mike Intrator announced this news during the company's second-quarter earnings call. The company's quarterly revenue reached $2.58 billion, a 112% increase year-over-year, and the company has a $104 billion revenue backlog, excluding commitments booked since July.
Intrator emphasized that pricing for older GPU generations is at or above what it was years ago. The data center cooling capacity is becoming a bottleneck as massive AI data center construction consumes more energy. Ultra Ethernet, a data center interconnection technology, is expected to be the next big advantage. Concerns have been raised that hyperscalers are overstating their AI financing by assuming GPU useful-life of 5-6 years when the reality is closer to one to three years.
Intrator stated that GPUs nearing the end of their contract period have been rebooked at nearly 95% of their original price, and Nvidia CFO Colette Kress refuted Burry's claims, stating that A100s sold six years ago still operate at full utilization.
The 2029 contract extends the record of profitability for older GPUs beyond the six-year depreciation schedules that hyperscalers defend. Air-cooled Nvidia DGX A100 systems draw 6.5kW at maximum load and fit into data centers designed for roughly 20kW per rack. Newer GB200 and GB300 NVL72 racks require direct-to-chip liquid cooling and draw 120kW to 140kW.
This mismatch in power delivery and cooling infrastructure enables A100 fleets to remain profitable despite the aging of the silicon. The existing, air-cooled capacity, which is not fully utilized, is a better alternative to leaving it idle. CoreWeave's contracted power grew to 3.7 GW in Q2 and reached 4.2 GW as of Monday, covering nearly triple the capacity they can currently deliver.
CFO Nitin Agrawal added that the capacity coming up for renewal represents a small share of CoreWeave's fleet, with older-generation ASPs at or above levels from a year ago.
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