CoreWeave signs A100 GPU contracts into 2029, extending lifespan of 2020 hardware

Extended Lifespan for Nvidia A100 GPUs

CoreWeave announced a contract for Nvidia A100 GPUs that will run until 2029. This extends the operational lifespan of the Ampere-based GPUs to nine years after their initial release in 2020. CoreWeave CEO Mike Intrator stated that pricing for these prior-generation SKUs is currently at or above what it was years ago.

Financial Performance and Backlog

CoreWeave reported $2.58 billion in quarterly revenue, marking a 112% increase year-over-year. The company also has a $104 billion revenue backlog, with an additional $25 billion in new commitments secured since July. CoreWeave's contracted power capacity reached 4.2 GW, while only 1.5 GW is currently online, indicating significant customer demand exceeding immediate supply.

Infrastructure Constraints Drive Demand for Older Hardware

The continued demand for A100 GPUs is influenced by data center infrastructure limitations. An air-cooled Nvidia DGX A100 system draws 6.5kW, fitting into legacy data centers designed for approximately 20kW per rack. In contrast, Nvidia's newer GB200 and GB300 NVL72 racks require 120kW to 140kW and direct-to-chip liquid cooling, which existing facilities cannot support without extensive power and cooling overhauls. This mismatch ensures that older, less power-intensive GPUs remain viable and profitable.

Industry Perspectives on GPU Depreciation

Concerns about GPU obsolescence have been raised, with figures like Michael Burry suggesting hyperscalers understate depreciation by stretching useful-life assumptions. However, industry leaders like Nvidia CFO Colette Kress and CoreWeave's Intrator have countered these claims, noting that A100s sold years ago are still fully utilized and rebooked at high prices.