Appaloosa opens stake in CoreWeave amid hedge-fund interest

Appaloosa Management, the hedge fund run by David Tepper, has opened a new position in CoreWeave, adding another institutional investor to the company’s shareholder base.

CoreWeave is a U.S.-based cloud infrastructure provider with a market capitalisation of about $58.1 billion. The company sells specialised computing capacity used to train and run large artificial-intelligence models and other intensive computing tasks.

The purchase was disclosed recently and follows a wave of institutional buying that extends beyond chip designers to the cloud and data-centre layer that runs AI workloads.

CoreWeave has pursued an expansion strategy supported by both debt and equity financing. The company reported raising more than $30 billion so far this year and closed a $2.6 billion delayed-draw term loan on Aug. 10. That financing has been used to scale facilities to meet rising demand for AI computing capacity.

Investors are focused on CoreWeave’s cash position, its ability to convert a large contracted backlog into recognised revenue, and the firm’s balance sheet and cash flow generation following rapid expansion.

Appaloosa’s new stake joins other hedge funds that have recently added positions in companies providing the cloud environments and physical data-centre capacity used to operate large-scale AI systems.