AI cloud company CoreWeave explores Wall Street playbook to hedge memory-chip price risk

AI cloud computing company CoreWeave is exploring the use of financial derivatives as a potential hedge against a future drop in memory and storage chip prices, according to a person familiar with the matter.

The unusual move underscores how deeply the AI boom has entangled cloud providers with the volatile chip ‌market. To ⁠lock in ⁠supply amid soaring demand, thanks to a surge in AI infrastructure construction, cloud operators including CoreWeave have signed long-term agreements with memory and storage makers such as Micron and SanDisk.