CoreWeave looks to derivatives to hedge against falling memory‑chip prices

AI cloud provider CoreWeave is evaluating financial derivatives to protect itself from a potential decline in memory and flash‑storage chip prices. The company has already signed long‑term supply contracts with manufacturers such as Micron and SanDisk that set price floors for DRAM and storage chips, shielding suppliers from downturns but leaving CoreWeave exposed if prices drop. According to a source, executives are discussing hedging tools, including put options and other derivative instruments, but no contracts have been executed yet. The move reflects broader chip‑price volatility, with recent spikes in DRAM and NAND costs and expectations that new manufacturing capacity from SK Hynix and Micron will come online by early 2028, likely easing prices. Similar hedging strategies are used in sectors like airlines and energy to manage commodity price swings.