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.