NextFin News - Billionaire Philippe Laffont, the founder of Coatue Management, has executed a sweeping reallocation of capital that signals a cooling of enthusiasm for the infrastructure layer of the artificial intelligence boom. According to recent 13F filings for the period ending December 31, 2025, Laffont liquidated his entire position in CoreWeave, the Nvidia-backed cloud provider that had become a poster child for the AI-accelerated data center trade. The sale involved more than 6.7 million shares, valued at approximately $920 million at the start of the fourth quarter.
The exit from CoreWeave is particularly striking given the company’s pedigree. Backed by over $5 billion in investment from Nvidia, CoreWeave was positioned as the primary alternative to legacy cloud providers for developers seeking high-end H100 and B200 GPU clusters. However, the financial reality of the business has begun to weigh on even its most ardent supporters. While CoreWeave reported revenues of $5.13 billion in 2025—a doubling of its previous year’s performance—its net loss widened to $1.17 billion. This widening gap between top-line growth and bottom-line stability suggests that the capital-intensive nature of building AI data centers is testing the patience of institutional investors.
Laffont’s pivot was not a retreat into cash, but a rotation into a more established, cash-flow-positive giant. During the same quarter, Coatue increased its stake in Netflix by 76%, adding 467,400 shares to its portfolio. This move followed a blockbuster 10-for-1 forward stock split conducted by the streaming leader in mid-November 2025, which reset the share price from over $1,000 to a more accessible range. The purchase turned Netflix into a billion-dollar holding for Coatue, marking a significant bet on the resilience of the subscription-based media model over the speculative infrastructure of the AI cloud.
The timing of the Netflix accumulation suggests Laffont capitalized on a brief window of volatility. Shares of the streaming giant faced pressure late last year following a proposed acquisition of Warner Bros. Discovery, a deal that sparked regulatory concerns and questions about debt integration. However, the landscape shifted dramatically when Paramount Skydance emerged with a superior bid for Warner Bros. Discovery in February 2026, effectively removing the acquisition overhang from Netflix. By increasing his position before this resolution, Laffont positioned Coatue to benefit from the subsequent relief rally.
Beyond the M&A noise, the fundamental divergence between CoreWeave and Netflix is one of "proven" versus "unproven" economics. CoreWeave remains heavily reliant on private creditors to fund its massive hardware purchases, and recent reports indicate that some lenders are becoming more selective about financing data center projects for companies without investment-grade credit ratings. In contrast, Netflix has successfully navigated its most significant headwinds, including a crackdown on password sharing and the introduction of an ad-supported tier, both of which have bolstered its operating margins and free cash flow.
This portfolio shift reflects a broader trend among elite money managers who are moving away from the "picks and shovels" of the AI build-out in favor of companies that can leverage technology to dominate their respective consumer markets. While Nvidia remains a core holding for many, the secondary layer of AI infrastructure—represented by firms like CoreWeave—is facing a more rigorous valuation standard. Laffont’s decision to "cash in his chips" on a doubling investment in CoreWeave to double down on a streaming incumbent suggests that in the current market, a sustainable moat and a clean balance sheet are once again outperforming raw growth potential.
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