What is your reaction to secondary market sell-offs and debt financing around GPU cloud providers like CoreWeave?
Replied byJason Lemkin
Founder & CEO at SaaStr
Niche: SaaS
Revenue: Approx. USD 2.5 Million/month
Location: Palo Alto, California, United States
Started: 2012
Secondary discounts reflect rising investor anxiety over hardware depreciation and extreme debt leverage rather than lack of revenue growth. While compute demand remains extraordinary, infrastructure providers face continuous capital expenditure cycles and razor-thin margins. Unlike software with zero marginal cost, hardware hosting requires continuous capital to service debt and replace obsolete silicon.
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