Crusoe CEO says AI cloud sector is oversold, defends CoreWeave.

BlockBeats news, October 28 - According to Bloomberg, Chase Lochmiller, CEO of AI compute provider Crusoe, said at the Bloomberg Invest conference in Dallas that the recent sell-off targeting emerging cloud service providers is "overreaction," and competitor CoreWeave has struck some "very good deals" and is currently in a fairly good position.

CoreWeave is at the center of market concerns about the AI infrastructure boom and its massive debt financing. Its bonds fell to distressed levels this month, and its stock price has dropped more than 30%. Lochmiller stated that Crusoe's AI cloud compute business continues to face strong and broad demand.

Crusoe is involved in developing the flagship data center in Texas for the OpenAI and Oracle Stargate project, while also providing AI cloud compute. The company completed over $3 billion in financing last month, with a valuation of approximately $30 billion.

However, people familiar with the matter previously told Bloomberg that some tech companies have doubts about whether Crusoe can get large data centers operational and keep them running. Earlier this year, Oracle and OpenAI decided not to lease additional capacity at its Abilene, Texas project, and the related space was subsequently taken up by Microsoft.