Three AI computer landlords compared: who is strongest?
Companion study: Market Study MS-2026-004 — How much do the AI computer companies owe — and do lenders still trust them?
Three young companies — CoreWeave, Nebius and IREN — all rent out the powerful computers that AI runs on. All three are growing very fast and losing money while they build. CoreWeave is the biggest but owes the most; Nebius grows fastest with the healthiest margins; IREN has the most options but the least proof so far. Our comparison ranks Nebius strongest overall, if it delivers what it has promised for late 2026.
CoreWeave (CRWV) vs Nebius (NBIS) vs IREN (IREN) — Comparative Investment Analysis
As of mid-October 2026 (latest reported quarters: CRWV/NBIS Q2 2026, IREN FY2026/Q4 FY2026)
Summary
All three are neocloud / AI-infrastructure builders renting GPU capacity, all are growing very fast, all are GAAP-unprofitable in the latest quarter, and all are burning billions in free cash flow to build capacity ahead of contracted demand. They differ in scale, funding model, and binding constraint:
- CoreWeave is the largest and most proven at scale, with the biggest backlog ($104B) — but also the most leveraged balance sheet, and in October 2026 its bonds were pricing real distress (2032s below 80c, yield ~15%).
- Nebius has the fastest growth, the best AI-cloud unit margins, and a prepayment-funded model that softens its debt load — but it is priced for near-perfect delivery of a $7–9B year-end ARR target, and its backlog rests on two customers.
- IREN has the most optionality (power portfolio, Microsoft + Nvidia anchor contracts, a mining business to wind down) and the lowest valuation against contracted ARR — but the weakest near-term execution proof: only ~$1B of its $4B contracted ARR was operational at FY-end, and reliability questions hit its legacy sites in October.
Framework verdict (comparative, not a personal recommendation): For a growth-oriented investor who can tolerate volatility, Nebius looks strongest overall on the combination of growth, unit economics, and funding model — provided H2 2026 delivery lands. CoreWeave is the scale/valuation alternative if credit markets stabilize; IREN is the higher-variance optionality play if acceptance cadence and reliability improve. Specific view-changing triggers are listed at the end.
Market context on the measurement date: on Oct 14, 2026, all three fell sharply (CRWV −15.5%, NBIS −10.1%, IREN −12.2%) after a Gartner warning that up to 80% of neoclouds could cease independent operations by 2030, plus hotter-than-expected September CPI (3.7%) raising rate-hike odds. This was a sector repricing, not a company-specific earnings event. Sources: https://www.fool.com/coverage/stock-market-today/2026/10/14/stock-market-today-oct-14-coreweave-plummets-on-gartner-neocloud-warning-and-bond-yield-surge/ ; https://www.abcmoney.co.uk/2026/10/coreweave-stock-plunge-shares-sink-15-on-gartner-warning/
1. What each business actually does
| Company | Model | Revenue mix (latest quarter) |
|---|---|---|
| CoreWeave (CRWV) | Pure-play neocloud: buys Nvidia GPUs, builds/leases data centers, rents GPU clusters for AI training + inference; growing managed inference/software. Leases most data centers. | Q2 2026: $2.575B, essentially all GPU-cloud rental; managed inference booked ARR rose from ~$1M to >$100M in one quarter. |
| Nebius (NBIS) | AI-native hyperscaler / full-stack AI cloud: GPU compute + platform/software (Token Factory, inference tooling), plus small non-core units Avride (autonomous), TripleTen (edtech), equity stakes (ClickHouse, Toloka). Prefers to buy data centers outright. Originated from the 2024 Yandex breakup. | Q2 2026: group $582.3M, of which AI Cloud $574.9M (98%). |
| IREN (IREN) | Vertically integrated AI cloud pivoting from bitcoin mining: owns land, substations, buildings, GPUs, software. Mining sites being converted to AI data centers. | Q4 FY2026: AI Cloud $70.5M (51.4%) overtook mining $66.7M (48.6%) for the first time. FY2026: AI Cloud $128.8M vs mining $578.2M — the full-year mix still reflects the old business. |
Sources: CRWV — https://www.theregister.com/off-prem/2026/08/12/coreweave-revenue-doubles-as-debt-pile-reaches-356b/5286832 ; NBIS — https://financefeeds.com/nebius-nbis-q2-2026-earnings-preview-capex/ ; IREN — https://www.coindesk.com/markets/2026/08/28/iren-shares-fall-8-as-costly-ai-transition-weighs-on-earnings ; https://kalkine.com/news/artificial-intelligence/why-iren-nasdaqiren-reported-a-fiscal-2026-net-loss-despite-higher-revenue-and-ai-cloud-growth
2. CoreWeave (CRWV)
Latest financials — Q2 2026 (reported Aug 11, 2026)
- Revenue $2.575B, +112% YoY, +24% QoQ; H1 2026 revenue $4.653B.
- Gross profit $1,696M, 65.9% gross margin (74.2% a year earlier). Note: other vendors quote a 71.7% FY2025 gross margin excluding server/network depreciation — definitions differ, so compare GAAP gross margins with care.
- GAAP operating loss −$49M (−1.9% operating margin); adjusted operating income $128M (~5%); adjusted EBITDA $1.51B, ~59% margin.
- Net loss −$626M (vs −$290M a year earlier); net interest expense $640M = 24.9% of revenue, up ~140% YoY.
- Operating cash flow $679M; cash purchases of PP&E/software $6,422M → OCF-minus-cash-capex −$5,743M. On management's broader capex definition ($9.4B in Q2), FCF is closer to −$7.9B. Either way: deeply negative.
- Cash $5,524M at Jun 30. Principal debt $35,551M; net debt ~$29.5B; debt + lease obligations ~$52B per secondary tally. $10B available under revolver / delayed-draw facilities at Jun 30.
- Guidance: Q3 revenue $3.45–3.6B; FY2026 revenue raised to $12.4–13.2B, capex $35–39B, year-end annualized run-rate revenue $18.5–19.5B, adjusted operating income $960M–$1.15B.
Sources: https://www.cestriancapitalresearch.com/coreweave-nasdaq-crwv-stock-rating-do-nothing-too-much-balance-sheet-risk/ ; https://www.indmoney.com/blog/us-stocks/why-is-coreweave-stock-falling ; https://www.stocktitan.net/sec-filings/CRWV/10-q-core-weave-inc-quarterly-earnings-report-d3b596a1f167.html
Debt raises / refinancing
- April 2026: $3B converts upsized to $4B at close, 1.75% coupon, due 2031/2032.
- September 2026: announced $3B converts due 2033, upsized to $3.7B priced / $4.2B closed, 2.875%, conversion $97.85 (22.5% premium), ~$499–566M spent on capped calls; plus ATM for up to 35M Class A shares. Also June $3.5B senior notes due 2032 and August $2.6B delayed-draw term loan at SOFR+550bp.
- October stress: 2032 unsecured bonds traded below 80c, yield ~15% (Bloomberg via Fool/Stocktwits); management said it is seeking investment-grade treatment for more chip-backed debt to access insurer capital.
Sources: https://www.reuters.com/legal/transactional/coreweave-launches-3-billion-convertible-debt-sale-2026-09-17/ ; https://aistockwire.com/blog/coreweave-crwv-insurance-capital-unlimited-mcbee-bond-yields-october-2026 ; https://www.aiaffairs.com/markets/coreweave-closes-upsized-4-2-billion-convertible-bond-offering/
Customer concentration & backlog
- Q2: top 3 unnamed customers 36% + 26% + 10% = 72% of revenue; H1: Customer A 40%, Customer B 23%. In 2025, Microsoft was ~67% of revenue (62% in 2024) — concentration is falling in percentage terms but still extreme.
- Revenue backlog $104.2B at Jun 30 (+246% YoY); RPO $103.7B, ~41% expected in next 24 months; plus >$25B net new commitments early in Q3 (excluded from the $104B). >50% of backlog already attached to contracts where delivery has begun; expected >2/3 by year-end.
- Named: Meta up to ~$21B new deal (total ~$35B cited in secondary), OpenAI order form up to ~$6.5B through May 2031 (~6.3% of RPO), Jane Street ~$6B, Anthropic multi-year, Nvidia ~9% stake + $6.3B take-or-pay + Vera Rubin launch privileges (secondary).
Sources: https://www.fool.com/earnings/call-transcripts/2026/08/18/coreweave-crwv-q2-2026-earnings-call-transcript/ ; https://www.theregister.com/off-prem/2026/08/12/coreweave-revenue-doubles-as-debt-pile-reaches-356b/5286832
Capacity
- 1.5 GW active power across 51 data centers at Jun 30 (+~500 MW in Q2); 3.7 GW contracted at Jun 30, 4.2 GW by Aug 11; target >8 GW active by 2030 (and >1.85 GW active by end-2026 per secondary). Indonesia (360 MW, online 2028) and India/AdaniConneX (240 MW, mid-2028) extend the footprint. Nvidia partnership targets >5 GW of AI factories by 2030.
- Source: https://blockspace.media/insight/coreweave-convertible-notes-equity-sales-2033/
Valuation (Oct 14 close)
- Price $65.78 (finance data, data/crwv.json, fetched 2026-10-15T10:10:22Z); 52-week $60.55–$153.20; 1-yr return −45.1% to Oct 13 close.
- Market cap: Finnhub quoted $45.27B (https://finnhub.io/?q=%22CRWV%22). Caution: the Q2 10-Q disclosed 551.5M shares (458.9M Class A + 92.7M Class B) at Jul 31, which at $65.78 implies ~$36.3B. Vendor market caps differ by share-count/dilution treatment — treat $36–45B as the range, not a point.
- Multiples (using the range): TTM revenue ~$7.6B → ~4.8–6.0× TTM sales; FY2026 guidance midpoint $12.8B → ~2.8–3.5× 2026 sales; year-end ARR midpoint $19B → ~1.9–2.4× exit ARR. Cheapest of the three on forward sales/ARR. Analyst consensus cited as Moderate Buy, avg target ~$140.64 (secondary, stale relative to Oct selloff) — do not anchor on it.
Biggest risks (CRWV)
- Balance sheet / refinancing: $35.6B principal debt, interest already 25% of revenue, junk-bond yields ~15% in October; $35–39B of 2026 capex must be funded in a rising-rate market. If credit access tightens or backlog conversion slips, the model breaks first here.
- Customer concentration + customer-competition: top 3 = 72% of revenue; Microsoft, Meta, OpenAI are also building their own compute. A lost, delayed, or repriced anchor contract would hit revenue, backlog, and financing simultaneously.
- GPU economics / execution: rental-rate compression (H100 rates cited down 30–40% from peak in secondary), depreciation outrunning EBITDA, and the physical challenge of converting 4.2 GW contracted power into revenue-generating active power on schedule.
3. Nebius Group (NBIS)
Latest financials — Q2 2026 (reported Aug 12, 2026)
- Revenue $582.3M, +454% YoY (from $105.1M); AI Cloud $574.9M, +514%; H1 revenue $981M, +529% YoY. ARR $3.0B (+598% YoY, +56% QoQ).
- Gross margin ~77% (cost of revenue 23% of revenue, −6pp YoY). Group adjusted EBITDA $236.2M, 41% margin (vs −$21M a year earlier); AI Cloud adjusted EBITDA $285.7M, ~50% margin.
- GAAP operating loss −$175.9M (−30.2% operating margin) after D&A of $259.7M (+245% YoY) — D&A alone exceeded adjusted EBITDA. GAAP net loss −$190.4M (prior-year +$502.5M included a $597.4M revaluation gain). Depreciation lives were extended from 4 to 5 years in Jan 2026 — a key bear-case flag (Burry thesis).
- Operating cash flow $2,246M in Q2 — but this is prepayment-driven (deferred revenue rose to ~$6.0B). Capex purchases $5,657M in Q2 ($8,130M in H1) → OCF-minus-capex −$3.41B in Q2.
- Cash $8,042M at Jun 30 (vs $3,678M at Dec 31, 2025); non-current debt $8,499M; total debt ~$10.06B (TIKR); deferred revenue $5,975M.
- Guidance reaffirmed: FY2026 revenue $3.0–3.4B, year-end ARR $7–9B, group adjusted EBITDA margin ~40%, capex $20–25B.
Sources: https://financefeeds.com/nebius-nbis-q2-2026-earnings-preview-capex/ ; https://www.appeconomyinsights.com/p/neocloud-economics ; https://btw.media/en/nebius-counts-power-in-gigawatts-revenue-arrives-in-megawatts ; https://ts2.tech/en/nebius-stock-gains-2-1-despite-an-84-sell-target-as-analysts-split-by-326/
Debt raises / refinancing
- July 2026: first senior secured facility ~$775M, SOFR+2.50%, due Oct 2030, backed by deployed GPUs + contracted cash flows.
- August 2026: $5.75B converts closed — $3.45B 0.50% due 2030 + $2.3B 4.50% due 2034. Earlier converts (Jun 2025 $1B; Mar 2026 ~$4.3B at 1.25%/2.625%) convert at ~$51–$183, well below the then-share price, so they are economically equity-like if the stock holds — at the cost of dilution.
- Q2 ATM: 12.7M Class A shares at ~$223.6 avg = ~$2.8B raised; 12.3M shares remained available under the program at quarter-end. Shares outstanding were 253.9M at Mar 31 (220.4M Class A + 33.5M Class B) — the ATM alone added ~5% to the count in one quarter.
Sources: https://nebius.com/newsroom/nebius-group-announces-closing-of-private-offering-of-convertible-senior-notes-with-aggregate-gross-proceeds-of-approximately-5-75-billion ; https://www.stocktitan.net/sec-filings/NBIS/6-k-nebius-group-n-v-current-report-foreign-issuer-a9d248e84219.html
Customer concentration & backlog
- RPO ~$37.5B at Jun 30 (from ~$21B at end-2025, ~$34B at Mar 31). Contracted revenue >$40B including options; firm portion ~$32B = ~80% from two customers: Microsoft $17.4B (up to $19.4B) through 2031 (Vineland, NJ), Meta $12B firm + $15B option = up to $27B (first $3B deal Nov 2025, expanded Mar 2026, Vera Rubin).
- Q2 revenue: 3 unnamed customers 24% + 21% + 14% = 59%. Q2 signed 4 deals averaging >$1B each, including Reflection (>$1B) and Cohere — the list is widening, slowly.
- Prepayments: 70% of Q2 deals included prepayments covering 50–60% of associated capex; >$9B prepayments expected in 2026; estimated payback on Q2 deals 1 yr 10 mo (vs 2–3 yrs historically). Annual contract value rose from ~$12M/MW (2026 base) to >$20M/MW on Q2 deals; short-term deals at $40–50M/MW; on-demand prices raised ~20% on Oct 1.
Sources: https://www.fool.com/investing/2026/10/05/nebius-has-usd40-billion-of-customer-commitments-most-of-it-comes-from-2-customers/ ; https://www.fool.com/investing/2026/09/27/nebius-is-raising-the-price-of-its-ai-compute-on-oct-1-here-s-what-that-says-about-the-shortage/
Capacity
- From 170 MW at end-2025 to 800 MW–1 GW by end-2026; contracted power target raised to 5 GW (from 3–4 GW). Vineland, NJ: 300 MW phase 1 for Microsoft (community opposition / expansion hearings reported Aug–Sep 2026; planning decision pending at last report). Finland Mäntsälä scaling to 75 MW. Oct 1: +50 MW deal with AIB Data Centers (SE US); acquired Inferize for inference utilization.
- Nvidia: $2B investment Mar 2026, 9.3% stake (13G incl warrant), Exemplar Cloud status on GB300; Vera Rubin deployment via Meta deal.
Sources: https://www.fool.com/investing/2026/10/09/heres-what-1000-invested-in-nebius-could-be-worth/ ; https://en.infomaxai.com/news/articleView.html?idxno=134002
Valuation (Oct 14 close)
- Price $186.01 (data/nbis.json, fetched 2026-10-15T10:10:22Z); 52-week $73.52–$299.86; 1-yr return +52.7% to Oct 13 close — the only one of the three up over 12 months.
- Market cap: Finnhub $60.10B (https://finnhub.io/?q=%22NBIS%22). Share-count check: 253.9M shares at Mar 31 × $186 = ~$47.2B before Q2 ATM (+12.7M) and convert dilution — again, treat $47–60B as the range.
- Multiples: TTM revenue ~$1.36–1.4B → ~34–44× TTM sales (by far the most expensive on trailing sales); FY2026 guidance midpoint $3.2B → ~15–19× 2026 sales; year-end ARR midpoint $8B → ~5.9–7.5× ARR. Analyst 2027–28 estimates cited (Fool/TIKR): revenue $12.3B in 2027, $23B in 2028; at those numbers the stock would be ~4–5× 2027 sales — i.e., the valuation only normalizes if the delivery ramp lands. Rosenblatt initiated Buy at $304 on Oct 7–8; Northland cited at $415; bears at ~$83–122 (wide dispersion = high uncertainty, not a consensus).
Biggest risks (NBIS)
- Two-customer backlog: ~80% of firm contracted revenue from Microsoft + Meta. A cancellation, delay, or failure to exercise the Meta $15B option would cut the growth story at the knees.
- Dilution as a funding model: converts + ATM are the funding strategy. If the stock falls, the convert overhang becomes real debt and the ATM raises less per share — a reflexive loop in reverse.
- Execution / delivery + depreciation: contracted power (5 GW) is not connected power (800 MW–1 GW by end-2026). Vineland permitting/community risk, GPU supply, and the Burry critique (5-yr lives vs 8-yr residual-value claims) all sit between backlog and GAAP profit. Q2 D&A already exceeded adjusted EBITDA.
4. IREN (IREN)
Latest financials — FY2026 (year ended Jun 30, 2026, reported Aug 27, 2026)
- Total revenue $707.0M, +41.1% (from $501.0M). AI Cloud $128.8M (from $16.4M, +687%); mining $578.2M (from $484.6M).
- Q4 FY2026: revenue $137.2M, −27% YoY, −5% QoQ; AI Cloud $70.5M vs mining $66.7M; adjusted EBITDA $19.2M, 14% margin (−68% QoQ); net loss −$684M incl $450.4M impairment.
- FY2026: net loss −$702.6M (vs +$86.9M) driven by $638.8M non-cash impairments on decommissioned mining hardware; adjusted EBITDA $245.7M, 35% margin (vs $269.7M / 54% a year earlier). Gross profit $487.3M implies ~68.9% gross margin on a pre-depreciation/impairment definition — do not compare directly to CRWV/NBIS GAAP operating margins, which use different cost treatments.
- OCF $2,100.4M (including $1,841.7M deferred-revenue/prepayment inflow); investing −$4,723.0M; financing +$9,680.1M. Approx FCF −$2.4 to −$2.6B depending on capex definition.
- Cash + restricted cash $7,619.5M ($5,895.6M cash + $1,670.3M restricted); debt $7,593.0M; deferred revenue $1,842.6M; equity $4,185.6M. Net debt on cash-only basis ~$1.7B.
- SG&A +229% in FY2026; stock-based comp ~29% of revenue (secondary) — the pivot is expensive in overhead as well as capex.
Sources: https://kalkine.com/news/artificial-intelligence/why-iren-nasdaqiren-reported-a-fiscal-2026-net-loss-despite-higher-revenue-and-ai-cloud-growth ; https://www.coindesk.com/markets/2026/08/28/iren-shares-fall-8-as-costly-ai-transition-weighs-on-earnings ; https://investwithcolby.substack.com/p/iren-limited-iren-q4-fy2026-earnings
Debt raises / refinancing
- Microsoft GPU package: $3.65B investment-grade facility (6.0% avg; $1.5B delayed-draw loan + $2.1B 5.96% senior notes due 2031, rated A / A(low)) — with prepayments covers 96% of the $5.81B GPU capex for Microsoft. This is the cleanest financing of the three on a per-contract basis.
- Second package: $2.8B for non-investment-grade customers, incl $2.4B at 9.0% fixed (Blue Owl/PIMCO, Mackenzie air-cooled expansion) — a 300bp spread that prices counterparty quality.
- Converts: Dec 2025 $2.3B (0.25%/1.00%, conversion ~$51.40) + equity to retire old low-strike converts; May 2026 $3.0B due 2033, 1.00%, conversion ~$73.07, capped call to $110.30; Sep 2026 $875M 0% due 2031 (+$125M option).
- Nvidia: right to buy up to 30M shares at $70 over 5 years, vesting only as Nvidia GPUs deploy (full vesting at 600k GPUs). $2.1B is the full-exercise value, not cash invested.
Sources: https://respectinvestment.com/investor-strategy/iren-limited-iren-stock-prediction-65-bull-26-bear/ ; https://www.stocktitan.net/sec-filings/IREN/8-k-iren-ltd-reports-material-event-7bbd0ce1dd0b.html
Customer concentration & backlog
- No customer-percentage revenue breakdown was disclosed in the sources reviewed — a disclosure gap vs CRWV/NBIS. Economically, the book is dominated by two contracts:
- Microsoft: ~$9.7B, 5-yr, GB300 capacity, 20% prepayment, $5.8B Dell GPU order; 4×50 MW Horizon at Childress; Horizon 1 (50 MW) accepted Aug 2026, Exemplar Cloud status; remaining Horizon 2–4 due later in 2026.
- Nvidia: $3.4B, 5-yr AI Cloud contract for Nvidia's own workloads (Blackwell, ~60 MW Childress) + up to 5 GW DSX partnership.
- Contracted ARR $4.0B for 2026 capacity, but only ~$1.0B operational at FY-end. Target: $3.7B ARR by end-2026, rising to $4.4B with Dell Blackwell systems (Microsoft ~$1.9B avg/yr + Nvidia ~$0.7B avg/yr + ~$1.8B planned deployments). An unconfirmed Anthropic report circulated in Oct 2026 — treat as unverified.
- Secondary tally: ~$13.8B capital commitments vs ~$7.6B cash+restricted — a funding gap to close via debt/equity/prepayments.
Sources: https://www.datacenterdynamics.com/en/news/microsoft-signs-97bn-cloud-capacity-deal-with-iren/ ; https://www.theblock.co/news/business/2026-08-17-iren-delivers-first-four-ai-cloud-deployments-microsoft-under-9-7-billion-deal-412016 ; https://www.stocktitan.net/sec-filings/IREN/8-k-iren-ltd-reports-material-event-81e2aabaad95.html ; https://bytevyte.com/iren-shares-rise-then-fade-on-unconfirmed-anthropic-cloud-deal-report/
Capacity
- 2026 target: 480 MW AI Cloud, 150,000 GPUs. 2027: 1,210 MW (730 MW under construction across BC + Texas, incl Childress + Sweetwater 1). Beyond 2027: 5 GW global power portfolio (N. America, Spain, APAC/Australia). Sweetwater: 2 GW total (1.4 GW + 0.6 GW), first 300 MW expected Q4 2027. Childress campus: 750 MW grid capacity. ~23,000 GPUs in fleet at last report (Oct), contracts secured for ~11,000 of them — the 150k target requires a steep H2 ramp.
- Note the acceptance gate: energized MW ≠ revenue. Only customer-accepted MW converts contracted ARR into recognized revenue (Horizon 1 = first 50 MW accepted).
Sources: https://www.stocktitan.net/sec-filings/IREN/8-k-iren-ltd-reports-material-event-81e2aabaad95.html ; https://WWW.FOOL.COM/investing/2026/09/10/irens-sweetwater-announcement-hints-at-a-larger-gi/ ; https://www.ainvest.com/news/iren-energized-megawatts-clear-gate-revenue-2609/
Valuation (Oct 14 close)
- Price $30.56 (data/iren.json, fetched 2026-10-15T10:10:22Z); 52-week $28.93–$76.87; 1-yr return −45.7% to Oct 13 close.
- Market cap: Finnhub $13.85B (https://finnhub.io/?q=%22IREN%22); Barchart 357.4M shares implies ~$10.9B; FinanceCharts annual 380.2M shares implies ~$11.6B. Range ~$11–14B.
- Multiples: FY2026 revenue $707M → ~15–20× TTM sales (expensive on trailing sales, but trailing sales are dominated by the shrinking mining business); contracted ARR $4.0B → ~2.7–3.5× contracted ARR (cheapest vs contracted ARR alongside CRWV); if only the ~$1B operational ARR counts, ~11–14× operational ARR. Consensus cited as Moderate Buy, avg target ~$79 (secondary) — implies >100% upside, which reflects how much of the bull case is still in future delivery.
Biggest risks (IREN)
- Execution / reliability: SemiAnalysis (Oct 7–8) cited user reports of multi-day outages, storage/network failures at Prince George & Mackenzie, BC, calling them the worst sites by users, and challenged the "managed cloud services" claim; newer Childress/Sweetwater said to look much better. No IREN response appeared in coverage reviewed. For a company selling uptime to Microsoft/Nvidia, this is the most company-specific risk of the three.
- Transition economics: Q4 total revenue fell 27% YoY while the pivot burned cash; adjusted EBITDA margin collapsed to 14% in Q4; $639M of impairments show how fast mining hardware value can be written off. If AI acceptance slips, the company is left with shrinking mining revenue and a large fixed build.
- Funding / dilution + concentration: debt $7.6B, commitments ~$13.8B vs $7.6B cash+restricted, and effectively two anchor customers (Microsoft + Nvidia) account for most contracted ARR. The 9.0% non-investment-grade package shows what the market charges for non-hyperscaler risk.
5. Head-to-head comparison
| Dimension | CRWV | NBIS | IREN | Strongest |
|---|---|---|---|---|
| Growth | Rev +112% YoY (Q2); TTM ~$7.6B; largest absolute adds | Rev +454% YoY (Q2); ARR +598% YoY; smallest base, fastest % | Total rev +41% FY; AI Cloud +687% FY but from $16M; Q4 total rev −27% YoY | NBIS on rate; CRWV on absolute scale |
| Profitability path | Adj EBITDA 59%, adj op margin ~5%; GAAP op −1.9%, net −24%; interest = 25% of rev | Adj EBITDA 41% group / 50% AI Cloud, rising; GAAP op −30% (D&A > adj EBITDA); repricing power, payback 1.8 yrs | Adj EBITDA 35% FY, but 14% in Q4; GAAP deeply negative incl impairments; SG&A +229% | NBIS (margin + pricing trajectory); CRWV second on EBITDA, last on interest burden |
| Balance-sheet risk | Worst: $35.6B debt, junk yields ~15%, $35–39B capex in 2026, FCF −$5.7B in Q2 | Cash $8.0B, debt ~$10–14B incl Aug converts, but prepayments fund 50–60% of capex; FCF −$3.4B in Q2; capex $20–25B in 2026 | Net debt ~$1.7B looks light, but commitments ~$13.8B vs $7.6B cash+restricted; per-contract financing best for Microsoft (6%), worst for non-IG (9%) | NBIS (prepayment model), IREN second, CRWV highest risk |
| Customer concentration | Top 3 = 72% of Q2 rev; Microsoft ~67% in 2025 | Top 3 = 59% of Q2 rev; ~80% of firm backlog from 2 customers | No % disclosed; ~2 contracts = most of contracted ARR | None good; CRWV most concentrated in recognized revenue, NBIS most in backlog, IREN most binary |
| Valuation | ~2.8–3.5× 2026 sales; ~1.9–2.4× exit ARR — cheapest on forward numbers | ~15–19× 2026 sales; ~5.9–7.5× YE ARR — most expensive unless 2027 estimates hit | ~15–20× TTM sales; ~2.7–3.5× contracted ARR; ~11–14× operational ARR — cheap vs promises, expensive vs delivered | CRWV cheapest vs near-term delivery; IREN cheapest vs contracted ARR; NBIS most expensive vs today |
| Execution track record | Added ~500 MW in Q2; 1.5 GW active; backlog conversion is the proven machine — but at extreme capex | Vineland delivery on schedule for Microsoft tranches so far; pricing power demonstrated; still must 5–6× connected power in ~6 months to hit YE ARR | Horizon 1 accepted (first 50 MW); but only ~$1B of $4B ARR operational; BC reliability questions; acceptance cadence is the swing factor | CRWV (delivery at scale); NBIS second; IREN least proven |
Cross-cutting risks for all three: (a) GPU depreciation / residual-value debate (Burry: 5-yr lives vs 8-yr DCF residual claims; Nvidia circular-financing critique); (b) Gartner-style neocloud consolidation risk — hyperscaler customers are also competitors and could insource or squeeze pricing; (c) power/interconnection as the true bottleneck — contracted GW ≠ energized GW ≠ accepted/revenue GW; (d) rate sensitivity — all three fund multi-billion capex in debt/convert markets, so the Oct 14 CPI + bond-yield shock is a live stress test, not a hypothetical.
Sources for cross-cutting: https://stocktwits.com/news-articles/markets/equity/michael-burry-warns-nvidia-ai-infrastructure-expansion-mirroring-1960s-computer-leasing-bubble/cZD01nERB0L ; https://www.ainvest.com/news/nvidia-big-answer-burry-short-rides-number-skeptics-watch-2609/
6. Framework: which looks best overall, and what would change the view
For a growth-oriented investor who can tolerate volatility (comparative framing, not a personal recommendation):
- Best overall: Nebius. It pairs the fastest growth with the best AI-cloud margins (50%), the clearest repricing power (shorter contracts, Oct 1 price rises, $20–25M/MW on new deals vs $12M base), and the most self-funding build (prepayments covering half or more of capex, deferred revenue $6B). The valuation is demanding, but it is the only one of the three where unit economics are visibly improving and the funding model does not depend on junk-bond market access week to week.
- Runner-up: CoreWeave. If the question is "who has the most contracted demand and the cheapest price for it," CRWV wins. The $104B backlog + $25B early-Q3 commitments + 4.2 GW contracted power is a scale moat none of the others match. The reason it is not ranked first is that the binding constraint is not demand but credit: October's ~15% bond yields show what happens when the market doubts the funding model, and interest already consumes a quarter of revenue.
- Highest variance: IREN. The power portfolio (5 GW) + Microsoft/Nvidia anchors + per-contract investment-grade financing for Microsoft give it real assets and real customers. But the market is being asked to pay for $4B of contracted ARR of which only ~$1B is operational, while digesting a Q4 margin collapse and reliability allegations at legacy sites. The upside if Horizon 2–4 + Sweetwater land on schedule is large; the downside if acceptance slips is a return to a shrinking mining business with a large debt load.
What would change this view — specific developments to watch:
| If this happens… | Effect |
|---|---|
| NBIS fails to reach ~$7B ARR by year-end, or Q3 shows delivery slippage / Vineland permitting delay | NBIS loses its "best overall" rank; valuation (15–19× 2026 sales) has no cushion for a miss. CRWV becomes the default scale pick. |
| CRWV refinances / achieves investment-grade treatment on a chunk of chip-backed debt, or 2032 bond yields fall back below ~10% with backlog converting to Q3 revenue $3.45–3.6B as guided | CRWV overtakes NBIS — the credit discount was the main reason it ranks second. |
| CRWV loses / sees a major cut to a top-3 customer contract, or a covenant/funding event forces a dilutive rescue raise | CRWV drops to last; thesis becomes distress, not growth. |
| IREN gets Horizon 2–4 accepted on schedule, converts >$2–3B of contracted ARR to operational, and credibly rebuts the BC reliability reports | IREN overtakes CRWV on risk-adjusted optionality and challenges NBIS on contracted-ARR value. |
| IREN acceptance slips into 2027, or a Microsoft/Nvidia delivery dispute emerges, or mining revenue falls faster than AI ramps | IREN becomes the weakest of the three; the funding gap (~$6B+ commitments over cash) dominates. |
| Any of the three: a hyperscaler (Microsoft/Meta) materially cuts neocloud outsourcing, or GPU rental rates compress broadly, or Nvidia residual-value / circular-financing concerns trigger a sector credit freeze | All three re-rate down together — this is the shared tail, and October 14 was a mild preview. |
Next catalysts: CRWV Q3 earnings (guided $3.45–3.6B revenue) and bond-market tone; NBIS Q3 / year-end ARR print vs $7–9B guide; IREN Horizon 2–4 acceptance + Q1 FY2027 (quarter ending Sep 2026) update on operational ARR and BC-site response.
Could not verify / open questions
- Share counts / market caps: vendors disagree materially (see ranges in each section). A fully diluted share count including convertibles, warrants, ATM shares, and Class B shares was not reconciled to a single authoritative figure for any name as of Oct 15. Multiples above are therefore ranges.
- Gross-margin comparability: each company treats depreciation, stock-based comp, and (for IREN) impairments differently. GAAP operating margins are not like-for-like; adjusted EBITDA margins are the cleaner cross-company profit proxy, but they exclude the D&A that is the core bear-case issue.
- IREN customer % concentration: no revenue % by customer was found in reviewed sources — flagged as a disclosure gap.
- CoreWeave customer identities: 10-Q uses Customer A/B/C letters; mapping letters to Microsoft/OpenAI/Meta is inferred from secondary sources, not confirmed in the filing excerpts reviewed.
- Analyst price targets: cited targets ($140 CRWV, $304/$415 NBIS, $79 IREN) come from secondary aggregators and pre-date or straddle the Oct 14 selloff; they are dispersion indicators, not forecasts to rely on.
- Unconfirmed items: Anthropic–IREN contract (unverified press report); IREN BC outage claims are user reports compiled by SemiAnalysis, not audited outage data or a customer termination notice.
Sources
- Finance data (live, Oct 15, 2026): data/crwv.json, data/nbis.json, data/iren.json, data/voo.json — fetched 2026-10-15T10:10:22Z. Prices quoted are the Oct 14 closes as carried in that feed ($65.78 / $186.01 / $30.56); VOO $707.43 for market context.
- Per-company source notes with URLs and read dates: notes/source-crwv.md, notes/source-nbis.md, notes/source-iren.md.
- Key primary/near-primary sources: CoreWeave Q2 earnings call transcript (Fool); CoreWeave 10-Q via StockTitan; Nebius $5.75B converts close (nebius.com newsroom); IREN 8-K / Q3 FY26 transcript via StockTitan; Microsoft–IREN deal (Data Center Dynamics); IREN Horizon 1 delivery (The Block).
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v1.0 — original publication, Oct 15, 2026; no corrections.