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All-In with Chamath, Jason, Sacks & Friedberg · Money & Markets · October 2026
Chamath asked why Horowitz's firm has stayed out of GPU clouds like CoreWeave. Horowitz answers from his LoudCloud days: a debt-financed bet on the price of capacity can flip on you. He adds that for now AI is a shortage market, which helps CoreWeave.
Yeah.
But it's very interesting to me that you and Mark, as the kind of primogenitor, have passed on the whole space. So I want to know why.
Well, it's because of this. I mean, so it can end up being like a very dangerous arbitrage business where you can get upside down easily. And so if you look at LoudCloud, just as an example, just here, here's a simple thing that happened to us. In 1999, bandwidth was $1,500 a megabit. And you couldn't get it, it was very hard to get it. And so you had to get a long-term contract three years. By 2001, it was $50 a megabit. So if you were holding bandwidth, and you borrowed money to get it, you're dead. You're dead. So that, you know, that kind of thing is so out of the control of the entrepreneur and so different than what we'd like to fund that, you know, it just, it scared, it scared me to death. Now, look, I think the core dynamic of AI has been working for Core Weave, though, in terms of that, in that there's a massive shortage, not an overage of supply. So those prices don't seem to, you know, token prices have gone down, but GPU prices have not. And so things are going up. And by the way, data center space is going up in price…
All right, Sachs. Here's your polymarket. Core weave announces bankruptcy. That's a pretty aggressive polymarket. 15% chance at the end of 27 next year, 23% at the end of 2028. Seems a little far-fetched, given the fact that they have a massive demand for their equipment, as Ben Horowitz out. Well…
look, this is dumb because I think Michael explained it. Like you have this opco-propco setup. So CoreWeave can't go bankrupt. An asset-level vehicle for a data center or a build out could theoretically go upside down, but that'll go into receivership and then just manage where you sell down the…
Yes, he explained in that clip. He has each box independent of the next. So not a great polymarket, I think.