CoreWeave's Q2 Results: Soaring Revenue Amid Widening Losses in AI Infrastructure Race

CoreWeave Losses Widen as Data Center Demand Surges

CoreWeave Inc. posted steeper losses as it continued to build to meet demand from artificial intelligence developers. The company's shares fell 5% in after-hours trading. Second-quarter adjusted net losses in the period steeped significantly to $130.8 million, compared to $5 million last year, it said in a statement Tuesday. Analysts had projected losses of $96.3 million. "We are scaling rapidly as we look to meet the unprecedented demand for AI," Chief Executive Officer Michael Intrator said in the statement. Revenue tripled to $1.21 billion, the company said, ahead of expectations for $1.08 billion. The company said it would release financial guidance on its upcoming earnings call. (Source: Bloomberg)

CoreWeave CFO: $25BN raised in debt and equity in 18 months

Reliant on two mega customers? Who says GPU-for-rent kingpin is a not a sustainable biz model? Rent-a-GPU biz CoreWeave is still racking up eyewatering debts amid mounting net losses as it continues to burn cash on expanding datacenter capacity. The New Jersey-based firm is one of a new breed of cloud providers that focuses on GPU-based server infrastructure and services used by customers for the development and training of AI models. In its second quarter results for the three months ending June 30, CoreWeave grew its topline rapidly, reporting revenues of $1.21 billion, up 207 percent year-on-year and beating analyst estimates. However, as the old saying goes, revenue is vanity and profit is sanity: the business recorded a net loss of $290.5 million for the three months, albeit better than the $323 billion net loss logged for the period of 2024. MarketWatch reported that CoreWeave Shares sank by 10.4 percent in an extended trading session following the earnings announcement. CoreWeave spent $2.9 billion in capital expenditure during the quarter, the largest amount in its history, as it continues to invest in building out infrastructure to meet customer demand. During the quarter it signed a 250MW bit barn capacity agreement with Applied Digital valued at $7 billion over 15 years. CFO Nitin Agrawal disclosed on an earnings call that CoreWeave has taken on a total of over $25 billion worth of debt and equity since the start of last year, all to fund the building of its AI cloud infrastructure. "Since the beginning of 2024, we have secured over $25,000,000,000 of debt and equity to fund the build out and scale the leading AI cloud platform." And interest expense during Q2 was $267 million compared to $67 million a year ago, on the back of increased debt to support infrastructure scaling, partly offset by the lower cost of capital. "Scaling our capacity and services remains a key ingredient for our success in this structurally undersupplied market," said CEO and Co-Founder Michael Intrator on the same call with financial analysts. "We are aggressively expanding our footprint on the back of intensifying demand signals from our customers, ensuring that we maintain a durable, multiyear runway for growth. We are now on track to deliver over 900 megawatts of active power before the end of the year," he claimed. Intrator believes AI applications are "beginning to permeate all areas of the economy," and as a consequence, demand for CoreWeave's cloud AI services is aggressively growing. He also mentioned its proposed $9 billion acquisition of Core Scientific, a bitcoin mining outfit masquerading as a high-density colocation provider, saying that this will allow CoreWeave to scale faster and more efficiently. "Upon closing, CoreWeave would own approximately 1.3 gigawatts of gross power capacity across Core Scientific's national datacenter footprint, with an incremental one gigawatt or more available for future expansion," he said, claiming it would also eliminate more than $10 billion in future lease liability. This follows a report in the Financial Times earlier this month that some Core Scientific shareholders were not happy with the proposed merger, specifically that they were being offered CoreWeave shares in exchange amid concerns that the value of these could fall over the coming months. CoreWeave's operating margin shrank to 2 percent from 20 percent a year ago, which it blamed on $145 million in stock-based compensation costs. For Q3, the business expects revenue to fall in the range of $1.26 billion to $1.3 billion, while interest expenses will be in the range of $350 million to $390 million, Agrawal said. CoreWeave has raised its forecast for the whole of 2025 to within the range of $5.15 billion to $5.35 billion, a $250 million increase over prior guidance. However, Agrawal warned that a significant portion of CoreWeave's full year CapEx will fall in Q4, due to the timing of go-live dates of some of those infrastructure investments. The latest financial news may not calm concerns over the sustainability of CoreWeave's model, even though it is clearly tapping into high level demand for its services. The issue is that just a handful of hyperscalers make up its customer base. It lists OpenAI, Mistral AI, and IBM on its website, and an SEC filing when it announced its IPO revealed that 77 percent of its revenue came from just two customers during 2024. Microsoft accounted for 62 percent of the total, and Nvidia was understood to make up a large chunk of the rest. Putting all its eggs in those two baskets means that it is heavily reliant on the whims of management at the world's most powerful and valued tech businesses.®

CoreWeave revenue beats estimates on AI boom but shares fall on bigger loss

Aug 12 (Reuters) - CoreWeave (CRWV.O), opens new tab easily topped quarterly revenue estimates on Tuesday as the rapid adoption of artificial intelligence tools boosted demand for its cloud services, but a bigger-than-expected net loss sent its shares slumping 10% after the bell. The company currently operates 33 AI data centers across the U.S. and Europe and offers access to backer Nvidia's (NVDA.O), opens new tab chips, which are highly coveted by enterprises to train and run large AI models amid intense competition. CoreWeave reported revenue backlog of $30.1 billion as of end of June, compared with $25.9 billion on March 31. "Demand is humming, but it is the cost of growth that tempered the stock down in aftermarket trading," said Michael Ashley Schulman of Running Point Capital Advisors. Operating expenses jumped to $1.19 billion in the second quarter, from $317.7 million a year earlier. The company posted a net loss of $290.5 million, compared with analysts' average estimate of $190.6 million, according to data compiled by LSEG. "We are scaling rapidly as we look to meet the unprecedented demand for AI," CEO Michael Intrator said in the earnings statement. Investors have also focused on the company's reliance on a few big customers. "The backlog surge to $30B+ suggests demand visibility well beyond 2025, but the concentration in mega-customers like OpenAI means those relationships remain both the crown jewel and the single point of failure," said eMarketer analyst Jeremy Goldman. Meanwhile, CoreWeave executives reiterated the benefits of its $9 billion all-stock deal for crypto miner Core Scientific (CORZ.O), opens new tab. The deal, announced in July, is facing opposition. Core Scientific's largest shareholder, Two Seas Capital, has said it would vote against the sale. CoreWeave reported second-quarter revenue of $1.21 billion, beating estimates of $1.08 billion. The Livingston, New Jersey-based company raised its annual revenue forecast to be between $5.15 billion and $5.35 billion. It had previously projected annual revenue of $4.9 billion to $5.1 billion. Shares of the company, which reaffirmed its annual capital expenditure projection, were trading at $133.71. They have gained nearly three-fold since the IPO in March. Reporting by Juby Babu in Mexico City; Editing by Sriraj Kalluvila Our Standards: The Thomson Reuters Trust Principles., opens new tab

CoreWeave beats quarterly revenue estimates on sturdy AI demand

Aug 12 (Reuters) - CoreWeave (CRWV.O), opens new tab beat Wall Street estimates for second-quarter revenue on Tuesday, driven by accelerating demand for the Nvidia-backed (NVDA.O), opens new tab AI cloud computing firm's services. The company offers access to data centers and Nvidia chips, which are highly coveted for training and running large AI models amid intense competition. CoreWeave, which currently has 33 AI data centers up and running across the U.S. and Europe, focuses solely on GPU-based operations. Revenue backlog was $30.1 billion as of June 30, the company said. The company reported revenue of $1.21 billion for the second quarter, compared with analysts' average estimate of $1.08 billion, according to data compiled by LSEG. Reporting by Juby Babu in Mexico City; Editing by Sriraj Kalluvila Our Standards: The Thomson Reuters Trust Principles., opens new tab

CoreWeave shares drop as growing losses eclipse AI demand surge

Aug 13 (Reuters) - CoreWeave (CRWV.O), opens new tab shares sank 10% in premarket trading on Wednesday after the Nvidia-backed company posted a bigger-than-expected loss, raising doubts about its ability to keep costs under check amid robust AI demand. Its results underscore the tension between its rapid revenue growth and mounting financial strain as operating expenses jumped nearly fourfold to $1.19 billion in the second quarter. Analysts have turned skeptical of CoreWeave's excessive dependence on certain customers and its ability to grow profitably due to widening losses, heavy capital needs and deteriorating debt coverage. The company on Tuesday posted a net loss of $290.5 million, compared with analysts' average estimate of $190.6 million, according to data compiled by LSEG. "CoreWeave does not currently generate enough profit to pay all its debt holders, certainly not equity holders," D.A. Davidson analysts said. The company had around $8 billion in debt as of last year and had said in March that it would use about $1 billion of the IPO proceeds to repay debt. CEO Michael Intrator said the company is scaling rapidly to meet "unprecedented demand for AI", but noted that "accessing power shells capable of delivering the scale of infrastructure our clients require" remains the biggest constraint. "This continues to be a business that is not worth scaling," D.A. Davidson analysts said. CoreWeave operates 33 AI data centers in the U.S. and Europe, offering access to backer Nvidia's GPUs, which are highly sought after for training and running large AI models. Surging demand for its AI infrastructure helped the company top quarterly revenue estimates. Its stock price has jumped nearly three-fold since its IPO in March. Investors will seek clarity on the lock-up period related to the company's IPO, which could expire later this week compared to the typical six-month time frame. Sometimes, a stock is pressured when the lock-up ceases. Barclays analysts said the company's operating cash flow and capital expenditure for the quarter could be scrutinized going into the lock-up expiry. Reporting by Rashika Singh in Bengaluru; additional reporting by Lance Tupper in New York; Editing by Arun Koyyur Our Standards: The Thomson Reuters Trust Principles., opens new tab

CoreWeave shares drop even as revenue tops estimates

Mike Intrator, co-founder and CEO of CoreWeave, speaks at the Nasdaq headquarters in New York on March 28, 2025. CoreWeave shares fell about 6% in extended trading on Tuesday even as the provider of artificial intelligence infrastructure beat estimates for second-quarter revenue Here's how the company did in comparison with LSEG consensus: Revenue more than tripled from $395.4 million a year earlier, CoreWeave said in a statement. The company registered a $290.5 million net loss, compared with a $323 million loss in second quarter of 2024. CoreWeave's earnings per share figure wasn't immediately comparable with estimates from LSEG. CoreWeave's operating margin shrank to 2% from 20% a year ago due primarily to $145 million in stock-based compensation costs. This is CoreWeave's second quarter of full financial results as a public company following its IPO in March. CoreWeave pointed to an expansion in business with OpenAI, a major client and investor. Also during the quarter, CoreWeave acquired Weights and Biases, a startup with software for monitoring AI models, for $1.4 billion. In May, management touted 420% revenue growth, alongside widening losses and nearly $9 billion in debt. The stock still doubled anyway over the course of the next month. CoreWeave shares became available on Nasdaq at the end of the first quarter, after the company sold 37.5 shares at $40 each, yielding $1.5 billion in proceeds. As of Tuesday's close, the stock was trading at $148.75 for a market cap of over $72 billion. A CoreWeave data center project with up to 250 megawatts of capacity is set to be delivered in 2026, the company said in the statement. Executives will discuss the results and issue guidance on a conference call starting at 5 p.m. ET.

Nvidia-backed CoreWeave is plummeting after earnings. Here's what analysts have to say

CoreWeave's latest quarterly results surpassed Wall Street's expectations, and while analysts reacted favorably to the results, an upcoming lock-up expiration was another matter. CoreWeave - which rents out Nvidia chips to companies - posted second-quarter revenue of $1.21 billion, above the $1.08 billion that analysts surveyed by LSEG had estimated. The company also issued better-than-expected forward guidance. While CoreWeave shares shares more than doubled in the past three months, soaring 107%, the stock was down 12% in early trading Wednesday. CRWV 1D mountain CRWV, 1-day Some analysts said that the move lower could be tied to lock-up expiration effective at the close of the market on Thursday - when insiders will be allowed to start selling shares following the company's March initial public offering - which could also affect CoreWeave's planned takeover of Core Scientific . Nvidia owned about a 5% stake in CoreWeave at the time of its IPO. "This could have direct implications for the announced all-stock acquisition of CORZ as the implied valuation is directly tied to the performance of CRWV's stock," said Citizens JMP analyst Greg Miller, who rates CoreWeave a market perform. "As such, we believe any downward pressure resulting from increased share supply or insider selling could affect the deal dynamics and increase investor opposition." While the lock-up expiration adds one element of uncertainty, investors may also be questioning CoreWeave's operating cash flow and planned capital spending, which "again disappointed in-quarter," Barclays analyst Raimo Lenschow (equal weight) said. In fact, most of the Street only has a neutral view of CoreWeave, with 16 of 24 analysts rating it a hold rating, according to LSEG. Only five rate it a strong buy or buy. Here's what other analysts said about CoreWeave on the heels of its results. Morgan Stanley: equal-weight rating, $91 price target Analyst Keith Weiss' target implies downside potential of almost 39% from Tuesday's close. "Bottom line, accruing and expanding large contracts from the most demanding GenAI users provide strong validation of CoreWeave's strong positioning for the ramping GPU build-out, broadening the customer base likely proves key to increasing investor confidence in the durability of this growth. ... While we remain on the sidelines awaiting further evidence of the broadening of the software story at CoreWeave, for investors with strong conviction in the build-out of the GPU economy and longer-term investment horizons, CRWV should be considered as a core holding." JPMorgan: Overweight, $135 Analyst Mark Murphy's target calls for more than 9% downside compared with where CoreWeave closed Tuesday. "The fundamental drivers and business trends remain very solid, with the company speaking to strong demand that is outstripping supply and conveying robust pipeline momentum. ... Net-net, there could be a wide range of outcomes for CoreWeave. For this reason, we expect the stock to provide a wild, lumpy, volatile ride, requiring a risk tolerance that may not exist for most investors. If we end up with heightened economic volatility, CRWV shares would probably suffer disproportionately due to risk-off positioning. However, our sense is that investors are pricing in the glass-half-empty view more than the other view." Citigroup: buy, $160 Analyst Tyler Radke sees more than 7% upside potential. "CoreWeave notched another impressive revenue beat with slightly greater $ upside vs. last quarter and a strong Q3 revenue/FY25 guidance raise (+$159M). Though a strong revenue performance, the booking/capex figures were not as spectacular with incremental backlog additions (ex previously announced OpenAI contract) at just $200M, while profitability was mixed (EBIT beat but EBIT $s reiterated for the full year on higher spending). That said, guidance implies a significant ramp in capex/revenue acceleration in Q4 which is likely driven by Blackwell and significant data capacity online, which we see as a positive catalyst ahead. ... we'd expect shares to be volatile but expect weakness to be bought with AI demand remaining strong and revenue acceleration ahead." Bank of America: neutral, $168 Analyst Brad Sills' target implies about 13% upside. "While the magnitudes of the Q2 topline beat and Q3 raise were slightly below the Q1 print, results were solid, validating that CoreWeave remains well positioned as a leading AI infrastructure vendor. ... the lockup expires on Friday, which is likely to place pressure on the shares ... we believe CoreWeave remains well positioned to benefit from a ramping AI infrastructure industry." Stifel: hold, $120 Analyst Ruben Roy's target would equal more than 19% downside. "We remain constructive long term and are encouraged by today's data points, but see near-term upside capped by the potential CORZ related dilution and uncertainty, and the pending lock-up expiration on Thursday."

JPMorgan raises price target on CoreWeave heading into earnings, says AI ramp is 'intact'

JPMorgan is staying bullish on CoreWeave in the leadup to its quarterly results Tuesday after the bell. Analyst Mark Murphy raised his price target on the cloud computing stock to $135 from $66, implying more than 4% upside from Friday's close, and maintained his overweight rating. Murphy said he's "cautiously optimistic" on the long-term prospects of the company, especially after it secured a five-year deal with OpenAI back earlier this year for artificial intelligence data centers at $11.9 billion. "Our sense is that CoreWeave's opportunities are going to get bigger and lumpier, likely to the surprise of investors, though we are not making a specific call on the upcoming Q2 results as it is likely a futile exercise to speculate on the closing of specific deals and investors should in fact expect extreme lumpiness in CoreWeave's pattern of large bookings," the analyst wrote in a note dated Sunday. While Murphy thinks CoreWeave's long-term AI ramp is "clear" and "intact," he said the timing between its large bookings and buildouts remain an overhang on a quarterly basis. That could create "ongoing extreme volatility in CRWV shares," he said. CRWV 3M mountain CRWV, 3-month Still, the analyst is optimistic about the trajectory of the company's business pipeline, which could ultimately lead to growth in the long run. "Although timing and lumpiness still give us pause and create extreme volatility, we are positive on the potential for continued momentum in CoreWeave's business pipeline, and our field work suggests long-range potential for binary-outcome transactions which are very difficult to handicap and, if successful, can drive a very surprising magnitude of outsized growth and outsized debt financing with short-term cash burn," Murphy said. Murphy is in the minority of analysts covering the stock, as 16 out of 24 in total have stepped to the sidelines with a hold rating, per LSEG. Its roughly $100 consensus target also implies more than 22% downside. The stock was almost 3% higher in premarket trading Monday. Shares have soared more than 152% in the past three months but only about 3% in the last month.

CoreWeave stock falls 15% after deeper-than-expected Q2 losses

CoreWeave may be riding the AI wave, but its profit line is drowning in the swell. The AI cloud computing company sprinted through the second quarter with revenue that could have been a victory lap: $1.21 billion, trouncing Wall Street's $1.08 billion estimate and ballooning the company's backlog to a staggering $30.1 billion. That revenue was up 207% from the $395 million it posted in the same quarter a year earlier and roughly 14% higher than the $1.06 billion it booked in the first quarter. But the margin of this quarter's beat was smaller than it was earlier this year, hinting at a narrowing runway for upside surprises. AI demand is roaring, and CoreWeave, with its Nvidia-powered GPU cloud, is squarely on the front lines. Yet the applause turned muted when investors noticed something much less celebratory: the bottom line bled deeper than expected -- a net loss of $290.5 million, almost $100 million worse than what analysts had penciled in. That triggered an almost 10% after-hours selloff -- the stock is down around 15% on Wednesday morning -- as reality hit deeper than the earnings beat. Still, the stock price is up 218% year to date and has nearly tripled since its IPO. CoreWeave CEO Michael Intrator chalked up the gap between the company's strong revenue beat and its deeper-than-expected loss to one thing: infrastructure. Power, he said on the post-earnings call, is the choke point in this AI arms race. As the company expands rapidly, now running 33 AI data centers across the U.S. and Europe, its ability to scale those "power shells" hasn't kept pace. Intrator also leaned into the demand story on the earnings call. "Our strong second-quarter performance demonstrates continued momentum across every dimension of our business," he said. "We are scaling rapidly as we look to meet the unprecedented demand for AI." Both Intrator and CFO Jason Rappaport told analysts that they expect meaningful easing of power constraints in the back half of 2025 as contracted sites come online and as acquisitions are integrated. CoreWeave is one of the few players with the hardware, power capacity, and specialized infrastructure to rent out Nvidia's highest-end chips at scale, and that scarcity has made it a go-to company for OpenAI, Microsoft, and a growing roster of AI startups, fueling aggressive expansion. But the cost of chasing that growth is staggering. Operating expenses hit $1.19 billion, nearly quadruple the $317.7  million from a year earlier, and capital expenditures hit a record $2.9 billion. The company's debt now sits around $8 billion, and some analysts think the company could borrow another $10 billion before year's end to keep pace with its buildout plans. Revenue may be climbing at a breakneck pace, but so are the bills -- and that will test just how long CoreWeave can sprint without losing its financial footing. Investors are weighing strong demand against swelling costs. Analysts from D.A. Davidson didn't sugarcoat things, writing in an analyst note, "CoreWeave does not currently generate enough profit to pay all its debt holders, certainly not equity holders," reflecting broader anxiety about the company's heavy capital needs. Goldman Sachs maintained a "Neutral" rating, citing execution risks; Barclays flagged free cash flow pressures; and Stifel, while raising its price target, cautioned that profitability "remains a long way off." CoreWeave is plowing ahead anyway. Management raised its full-year revenue forecast to $5.15-$5.35 billion -- a modest bump but still a sign that clients are locking in more capacity -- and expects third-quarter revenue between $1.26 billion and $1.3 billion, slightly above consensus. But questions about concentration risk are still swirling; a handful of big customers account for a large chunk of sales, meaning a shift in priorities from any one of them could ripple through CoreWeave's results. The company also remains committed to its $9 billion all-stock acquisition of bitcoin-miner-turned-data-center operator Core Scientific -- seen as a way to offer what Rappaport said was "meaningful relief" on power constraints -- adding 1.3 gigawatts of contracted capacity to its portfolio. But that, too, faces headwinds. Two Seas Capital, Core Scientific's largest active shareholder, has said it will vote against the deal, arguing it "materially undervalues" the company and exposes investors to CoreWeave's sliding share price. Meanwhile, CoreWeave's IPO lock-up expires this week, giving insiders the green light to sell shares -- and potentially fueling even more turbulence. CoreWeave's roller-coaster moment isn't unique in the AI infrastructure boom, but its speed and scale stand out as it races to capture as much of it as possible before the market shifts. The backdrop is crowded with challenges: Nvidia's most advanced GPUs remain in tight supply, hyperscalers are accelerating their data center buildouts, and regulators in the U.S. and Europe are weighing tighter scrutiny of energy-intensive AI facilities. CoreWeave is at the epicenter of this frenzy, racing to build more and faster, with two competing forces in play: the need to capture demand ahead of rivals, and the pressure to transform that demand into sustainable returns. The numbers show that the company is winning on revenue, securing massive long-term contracts, and building an infrastructure footprint that few can match. But the numbers also show a burn rate and debt load that leave little room for missteps. In a market as frothy -- and as fickle -- as AI, CoreWeave's biggest challenge may be proving that scale alone can pay the bills.

CoreWeave Triples Revenue to $1.2B in Q2, Stock Tanks in After Hours Trade

Observers flagged how depreciation of CoreWeave's current hardware may mask losses, and rivals catching up on hardware could erode its edge. AI infrastructure provider CoreWeave posted another strong quarter and a larger revenue backlog in its latest quarterly earnings. Yet, its shares fell sharply in after-hours trading as investors focused on swelling costs and shrinking operating margins. CoreWeave's revenue came in at about $1.2 billion, roughly triple year over year, but still booked a $290 million net loss as interest costs and infrastructure spending surged, according to a statement released Tuesday. The company is "scaling rapidly" as it seeks to "meet the unprecedented demand for AI," co-founder and CEO Michael Intrator said. Its latest revenue figures come as resistance to its $9 billion all-stock takeover of Core Scientific mounts, with Two Seas Capital, the latter's largest shareholder, vowing to vote against what it said was an "inadequate" deal. Adjusted net loss widened to roughly $131 million, despite adjusted operating income of $200 million, as operating expenses and stock-based compensation increased. Its revenue backlog stood at roughly $30 billion, representing signed multi-year commitments to be recognized as further compute capacity comes online. Its operating margins compressed to 2% from 20% a year earlier. Revenue backlog includes remaining performance obligations and other amounts expected to be recognized in future periods under committed contracts, subject to delivery and service availability, per CoreWeave's filing. Despite positive figures, investors weren't impressed, sending CoreWeave's shares tumbling more than 10% to $133.3 during after-hours trading, Nasdaq data shows. Narrowing lead Some observers contend the growth masks fragile economics, citing thin margins and depreciation assumptions on GPU lifespans. "Even their adjusted operating margin for the quarter was only 16%, which doesn't seem great for such a capital-intensive business," Jeffrey Emanuel, founder and CEO of blockchain infrastructure firm Pastel Network, told Decrypt. "But then you have to remember that they're depreciating all their H-100 GPUs assuming a straight line, six-year useful life." Emanuel noted that CoreWeave's current machines are not "remotely competitive on price or performance" now that newer ones are out. Some echo this concern, warning that CoreWeave's edge is narrowing as rivals secure similar hardware. "CoreWeave's lead has come from securing NVIDIA's newest GPUs first, but that edge fades as hyperscalers and specialist clouds catch up." Ram Kumar, core contributor at decentralized AI platform OpenLedger, told Decrypt. "Without faster margin expansion and locked-in utilization, they risk sliding from high-growth disruptor to low-return infrastructure landlord, especially in a price-war environment." Having "thin operating margins and heavy fixed costs" makes CoreWeave "more vulnerable than diversified hyperscalers to a demand pause," Kumar added. "A slowdown in AI training budgets or customer consolidation could quickly squeeze cash flow, making long-term contracts and software-driven stickiness critical to resilience." CoreWeave's accounting may also be masking deeper losses, Pastel Network's Emanuel argues. "If you adjust that depreciation expense to something even remotely realistic, like 2.5 or 3 years and front-loaded, they are losing money hand over fist. And that's with the benefit of some very juicy contracts they signed during the frenzy for computer capacity," he said. CoreWeave did not immediately respond to Decrypt's request for comment.

CoreWeave's stock crumbles on wider-than-expected loss - SiliconANGLE

Shares of the artificial intelligence cloud data center company CoreWeave Inc. slid more than 10% after it beat Wall Street's expectations on second-quarter earnings and revenue but posted a wider-than-expected loss overall. The company reported a loss before certain costs such as stock compensation of 21 cents per share, edging past the analyst's target of a 22 cents per share loss. Revenue for the period rose by a staggering 206% to $1.21 billion, easily beating the Street's forecast of $1.08 billion in sales. However, the data center infrastructure provider also reported a net loss of $290.5 million in the quarter, far bigger than the overall $199 million loss expected by analysts. CoreWeave's adjusted loss also deepened to $131 million, amounting to a gross margin of -11%, missing consensus expectations of a $103 million adjusted loss. One year earlier, it had reported an adjusted loss of just $5 million with a -1% margin. CoreWeave Chief Executive Michael Intrator (pictured) hailed the company's "strong" performance in the quarter, saying it demonstrates "continued momentum" across every aspect of its business. "We are scaling rapidly as we look to meet the unprecedented demand for AI," he added. There's certainly no denying CoreWeave's impressive revenue growth, but it could have been even faster if not for the fact that it's facing some significant capacity constraints, with power supply being a key bottleneck for the company. As a result, it had a revenue backlog of $30.1 billion at the end of the quarter. CoreWeave's finance chief Nitin Agrawal said on a conference call that demand for the company's services continues to outstrip supply. The company operates cloud-based data centers that are stacked full of Nvidia Corp.'s graphics processing units, which are rented out to customers seeking compute power for AI workloads. It's a direct competitor to cloud infrastructure giants such as Amazon Web Services Inc. and Google Cloud. On the call, Agrawal said CoreWeave's operating margin shrank from 20% a year earlier to just 2% at the end of the quarter, primarily due to $145 million in stock-based compensation costs. Its debt now sits at $11.1 billion. Intrator told analysts that the company has agreed a $4 billion expansion deal with OpenAI, in addition to its previously announced $11.9 billion deal with the world's most prominent AI firm. He also said that the banks, Goldman Sachs and Morgan Stanley, have become customers after acting as underwriters during the company's initial public offering in March. During the quarter, CoreWeave completed its previously announced $1.4 billion acquisition of Weights & Biases Inc., a startup that offers software for monitoring the performance of AI models. Last month, it also announced plans to acquire the data center builder Core Scientific Inc. for $9 billion, with that deal set to close later in the year. Looking to the current quarter, CoreWeave offered a decent forecast, saying it anticipates revenue of between $1.26 billion and $1.3 billion, above the analyst forecast of $1.25 billion. The company also upped its full-year revenue forecast to a range of $5.15 billion to $5.35 billion, from a prior forecast of $4.9 billion to $5.1 billion. The new range suggests a growth rate of 174% at the midpoint, and is well ahead of the Street's target of $5.05 billion in annual sales. Agrawal told analysts that "the timing of data center capacity coming online and generations of GPUs being placed into service could drive significant variation quarter-to-quarter in capital expenditures." He added that a "significant portion" of the $20 billion to $23 billion full-year capex forecast is likely to fall in the fourth quarter. CoreWeave has enjoyed a rollercoaster ride since going public at the end of March. It sold 37.5 million shares at $40 each during its IPO, raising around $1.5 billion in proceeds. Although the IPO price was lower than the expected range, the value of its stock has more than tripled since that debut, driven by an initial upbeat earnings report three months ago and robust forecasts for capital spending by other large technology companies. Intrator also announced plans for renting out GPUs on a "spot" basis, where customers will be able to access them at lower costs, but at the risk of being disconnected if the chips are needed elsewhere by a customer who's willing to pay more.

CoreWeave Shares Tumble After Surprise Earnings Miss

CoreWeave's shares slid roughly 10 percent during after-hours trading Tuesday evening. The hyperscaler giant reported higher losses than expected, despite the company beating its revenue targets. The Livingston, New Jersey-based firm, which operates 33 data centers and is known for its impressive haul of NVIDIA GPUs, has secured blue chip names like Microsoft, OpenAI, and IBM as clients, becoming a darling of the A.I. space. With a three-year growth rate of 5,896 percent, it clocked in at number 45 on this year's Inc. 5000 list. CoreWeave posted $1.2 billion of revenue for the second quarter, exceeding analyst estimates of $1.1 billion. But its higher than expected losses overshadowed the earnings announcement. The firm reported a $291 million net loss for the second quarter -- $50 million above analyst predictions. CoreWeave CEO Michael Intrator praised the company's "standout" quarter, noting it was a testament to artificial intelligence proliferating through more areas of the economy. "Adoption is expanding rapidly with enterprises increasingly viewing AI as a strategic imperative and CoreWeave as the force multiplier that enables adoption, innovation and growth," Intrator said Tuesday during the earnings call.

CoreWeave Stock Drops as Nvidia-Backed Firm's Loss Exceeds Forecasts

The company posted a second-quarter loss of $0.60 per share, while analysts surveyed by Visible Alpha had anticipated a loss of $0.45 per share. Revenue soared 207% year-over-year to $1.21 billion, beating estimates. Operating expenses jumped 276% to $1.19 billion, also more than anticipated. Co-founder and CEO Michael Intrator explained that CoreWeave was "scaling rapidly as we look to meet the unprecedented demand for AI." CFO Nitin Agrawal added on the earnings call with analysts that the company is "still operating in a structurally supply-constrained environment, where demand far outstrips supply for our products and services," according to an AlphaSense transcript. Agrawal explained that because of the need to invest more to meet that demand, expenses will continue to rise, including debt, adding that "these costs ahead of revenue have a short-term impact on our margins." Agrawal noted that with the expectation of rising sales, CoreWeave was boosting its full-year revenue guidance to $5.15 billion to $5.35 billion, versus its earlier outlook of $4.9 billion to $5.1 billion. Despite today's sharp declines, CoreWeave shares have soared more than 200% since their March debut.

CoreWeave IPO investors sitting on big gains get chance to sell - The Economic Times

CoreWeave's March initial public offering has been a roaring success for anyone lucky enough to get in at the start. The stock more than quadrupled by mid-June. Even after a recent selloff, the shares are still up nearly 150%. The problem, though, is most of those early investors haven't been able to cash in. That changes Friday for holders of more than 80% of CoreWeave's Class A shares, with the IPO lockup expiring two days after its second earnings release as a public company. The stock plunged 33% in those two days, in part, analysts say, in anticipation of a flood of selling. "It's a challenging, even confusing setup," said Dave Mazza, chief executive officer at Roundhill Investments, which holds CoreWeave. "It's reasonable to expect there could be significant selling, which is already weighing on shares. Over the long run, it opens up the stock to have greater float." CoreWeave's shares available to trade currently stand at less than 15% of those outstanding, compared to an average of roughly 95% for stocks in the S&P 500 Index, according to data compiled by Bloomberg. CoreWeave stock fell as much as 4.8% in early trading Friday in New York, extending losses into a third consecutive day. The Livingston, New Jersey-based company has become a popular way to bet on soaring spending for AI computing and counts Microsoft Corp. as its biggest customer. The stock closed at a record market value of $88 billion in June, up from less than $20 billion in the wake of its debut. But the shares have slumped amid concerns about CoreWeave's money-losing operations as well as a proposed all-stock acquisition of data-center operator Core Scientific Inc. CoreWeave closed on Thursday with a market value of about $49 billion, down 46% from the June 20 peak. Analysts expect the end of the lockup to at best cap near-term advances in the shares, as early investors lock in some gains. At worst, they see the stock falling even further. DA Davidson's Gil Luria, who is one of the three analysts tracked by Bloomberg with a sell rating on the stock, sees downside of more than 60%, based on his $36 price target. One owner that probably won't be selling: Nvidia Corp. The company, which dominates the market for AI chips that it supplies to CoreWeave, has about a 6.5% stake after slightly boosting its holdings in the quarter that ended in June, according to data compiled by Bloomberg. The position is worth about $2.4 billion at current levels. For long-term investors, CoreWeave's business prospects still look promising with tech giants spending ever larger sums in a race for AI supremacy. In its second-quarter earnings report on Wednesday, CoreWeave raised its revenue forecast for 2025 to $5.15 billion to $5.35 billion, from $4.9 billion to $5.1 billion. But that was overshadowed by a wider-than-expected net loss in the quarter. CoreWeave plans to spend as much as $23 billion on capital expenses this year. Of course, even if early investors like hedge-funds Magnetar Capital and Coatue Management want to sell, they have an incentive not to unwind positions too quickly, which could send the stock into a downward spiral. And having more shares available to trade could also be a benefit in the long run, giving more investors the opportunity to snap up the stock, according to Citigroup analyst Tyler Radke. "The upcoming lock-up may further pressure shares, but we believe buyers will emerge," Radke wrote in a research note earlier this week.

CoreWeave Q2 Earnings: Revenue Beat, EPS Miss, 'Continued Momentum' Driven By 'Unprecedented' AI Demand - CoreWeave (NASDAQ:CRWV)

CoreWeave Inc CRWV reported second-quarter financial results after the market close on Tuesday. Here's a look at the key details from the quarter. CRWV shares are down. Check the market position here. Q2 Earnings: CoreWeave reported second-quarter revenue of $1.21 billion, beating analyst estimates of $1.08 billion, according to Benzinga Pro. The company reported a second-quarter adjusted loss of 27 cents per share, missing estimates for a loss of 17 cents per share. CoreWeave has operated data centers across the U.S. and Europe since 2017. The company went public on the Nasdaq at $40 per share earlier this year. CoreWeave provides access to Nvidia GPUs to large technology and AI-focused companies. Total revenue was up more than 300% on a year-over-year basis. The company said it ended the quarter with a revenue backlog of $30.1 billion. CoreWeave reported $1.19 billion in operating expenses during the period and ended the quarter with $1.15 billion in cash and cash equivalents. "Our strong second quarter performance demonstrates continued momentum across every dimension of our business. We are scaling rapidly as we look to meet the unprecedented demand for AI," said Michael Intrator, co-founder and CEO of CoreWeave. CoreWeave executives will further discuss the quarter on an earnings call with investors and analysts at 5 p.m. ET. The company is expected to provide forward guidance on the call. CRWV Price Action: CoreWeave shares were up 130% over the past three months heading into Tuesday's report. The stock was down 5.92% in after-hours, trading at $139.50 at the time of publication, according to Benzinga Pro. Read Next: Elon Musk Says 'Epic Outcome' Ahead For Tesla As Company Scraps Dojo In-House AI Program Photo: PJ McDonnell/Shutterstock.com CRWVCoreWeave Inc$137.13-1.90%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentumN/AGrowthN/AQualityN/AValue11.51Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

CoreWeave's Chart Looks Bullish: Are Earnings The Next Catalyst? - CoreWeave (NASDAQ:CRWV)

CoreWeave Inc CRWV has been riding a strong upward current this year, surging more than 250% year-to-date and steadily climbing through the summer months. Now, as it prepares to report second quarter earnings Tuesday, investors are eager to see if this cloud infrastructure leader can keep its bullish streak alive -- or if some turbulence lies ahead. Track CRWV stock here. Read Also: CoreWeave Stock Ramps 30% Into Q2 Earnings: Here's What To Watch Bullish Momentum In The Clouds Chart created using Benzinga Pro At a robust $143.60 per share, CoreWeave comfortably floats above all its major moving averages. The eight-day simple moving average sits at $120.78, the 20-day at $120.85, and the 50-day just shy of $140.68 -- all flashing clear bullish signals. This technical picture suggests the stock is enjoying solid buying pressure and momentum, a positive sign that traders are confident in the company's ongoing growth narrative. The MACD (moving average convergence/divergence) indicator (blue line), currently at a negative 1.72, has crossed over the signal line (orange line) and still supports a bullish view, indicating that the stock's momentum may be stabilizing before another potential surge. Meanwhile, the Relative Strength Index (RSI) stands at a healthy 60.01, signaling that CoreWeave is neither overbought nor oversold, leaving room for further upside without the usual overheating warning signs. The Earnings Cloud: Silver Lining Or Storm? Wall Street's expectations are cautious but hopeful. Analysts forecast a loss of 17 cents a share on revenue of about $1.08 billion, according to Benzinga Pro data. This figure reflects CoreWeave's heavy investment in its proprietary cloud platform designed to power the next generation of AI applications. The company's cutting-edge technology is already helping fuel breakthroughs in AI, supporting complex models with automation and efficiency that few competitors can match. This makes today's earnings release more than just a report card -- it's a critical checkpoint on whether CoreWeave can translate its technological promise into sustained financial growth. Investors will be watching closely for signs that the company can continue scaling its platform and tapping into the booming AI infrastructure market. Clear Skies Ahead? With technicals glowing and a market hungry for AI innovation, CoreWeave's chart suggests the run isn't over yet. But earnings will be the ultimate litmus test. A strong beat and confident guidance could send shares soaring to challenge that $187 52-week high. On the flip side, any disappointment might create some short-term clouds for the stock. For now, CoreWeave is cruising on a bullish breeze -- and all eyes are on the skies to see if the momentum will hold as earnings land. Read Next: Trump Issues Nuclear Threat To Russia-And Wall Street's Fear Gauge Goes Vertical Photo: Shutterstock CRWVCoreWeave Inc$144.473.36%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentumN/AGrowthN/AQualityN/AValue11.51Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

CoreWeave Continues To Capture Microsoft, Google AI Dollars - CoreWeave (NASDAQ:CRWV)

Investors in the AI infrastructure space are suddenly seeing CoreWeave Inc CRWV not just as a vendor, but as a critical engine powering some of the world's most ambitious AI projects. From ~470MW of active AI power in second quarter to a projected 900MW by year-end 2025, the company is effectively doubling its footprint while signing incremental expansion deals with Microsoft Corp MSFT and Alphabet Inc's GOOGL GOOG Google. Still, CRWV is among today's weakest performers. See the full breakdown here. JPMorgan analyst Mark R. Murphy notes that CoreWeave's second quarter beat-and-raise quarter reflects a ""tremendous" number of sovereign governments which are expressing ambitions within AI," and highlights the company's ability to scale rapidly. Murphy sees CoreWeave's business as "trending in the right direction with ongoing traction, exhibiting robust performance across many metrics, and riding the AI secular mega-trend very well." Read Also: CoreWeave's Chart Looks Bullish -- Earnings Could Be The Next Catalyst Hyperscaler Hook The incremental expansions with Microsoft and Google underscore a subtle but powerful trend: hyperscale clients are increasingly relying on CoreWeave's platform to deploy large-scale AI clusters. Rather than building everything in-house, these tech titans are leveraging CoreWeave's speed and capacity to meet surging demand. The company describes this demand as "aggressively expanding [its] footprint on intensifying demand signals from [its] customers," a signal that even the most sophisticated AI developers recognize as hard to ignore. Capacity Crunch & Pipeline Momentum The roadmap isn't just about adding gigawatts of compute. It reflects carefully managed, high-velocity expansion that balances capacity deployment with pipeline growth. By year-end 2025, hitting 900MW of active power -- almost double second quarter levels. This should both satisfy client demand and position CoreWeave as a go-to partner for compute-intensive AI projects, from OpenAI training workloads to next-generation inferencing. Investor Takeaway Murphy points out that CoreWeave's second-quarter metrics -- including revenue growth of 207% year-over-year and operating income ahead of guidance -- show that, while the stock may remain volatile due to its lumpy business model, the underlying fundamentals are robust. The combination of tangible capacity growth, strategic hyperscaler partnerships, and robust pipeline momentum may help CoreWeave sustain its AI expansion, attracting both attention and investment from the biggest names in tech. Read Next: CoreWeave Q2 Earnings: Revenue Beat, EPS Miss, 'Continued Momentum' Driven By 'Unprecedented' AI Demand Image: Shutterstock CRWVCoreWeave Inc$134.60-9.51%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentumN/AGrowthN/AQualityN/AValue10.83Price TrendShortMediumLongOverviewGOOGAlphabet Inc$204.820.32%GOOGLAlphabet Inc$204.040.34%MSFTMicrosoft Corp$530.800.29%Market News and Data brought to you by Benzinga APIs

Why Is CoreWeave Stock Sinking Wednesday? - CoreWeave (NASDAQ:CRWV)

CoreWeave CRWV shares tumbled on Wednesday after the AI-focused cloud computing provider posted mixed second-quarter results, highlighting surging revenue and backlog alongside margin pressures from an aggressive expansion plan. The company reported $1.21 billion in quarterly revenue, well above prior-year levels and fueled by new contracts with OpenAI and major hyperscalers, but investors reacted to guidance that signals significant near-term costs as CoreWeave ramps capacity toward 900MW by year-end. Stifel analyst Ruben Roy maintained a Hold rating on the stock, raising his price forecast to $120 from $115. HC Wainwright's Kevin Dede kept a Neutral rating, while Needham analyst Mike Cikos also maintained a Hold. Also Read: CoreWeave's $6 Billion AI Bet Boosts Core Scientific Shares Ahead Of $9 Billion Merger Deal Stifel Highlights Backlog and Revenue Strength Roy said CoreWeave delivered strong second-quarter results, surpassing revenue and adjusted operating income estimates on continued compute demand despite power constraints. He noted that the backlog rose to about $30.1 billion, bolstered by a $4 billion OpenAI expansion and new hyperscaler contract wins likely tied to Microsoft MSFT, Meta Platforms META, and/or Alphabet GOOGL Google. Another expansion is set to benefit the third quarter. Roy called guidance "mixed," with third-quarter and full-year 2025 revenue outlooks above consensus but margins below expectations due to management conservatism. He projected third-quarter revenue of $1.28 billion and full-year 2025 revenue of $5.25 billion, alongside adjusted operating income of $175 million for the third quarter and $815 million for the year. His model factors elevated interest expense from recent debt raises, reaffirmed a $21.5 billion fiscal 2025 CapEx target to reach 900MW capacity, and potential ~10% dilution from the pending Core Scientific CORZ acquisition. HC Wainwright Notes Blockbuster Q2 Performance Dede said CoreWeave delivered a "blockbuster" second quarter, with revenue climbing 23.5% sequentially to $1.213 billion, well above his $1.063 billion forecast, driven by AI adoption across consumer and enterprise markets. He pointed to a 16% sequential jump in backlog to $30.1 billion, fueled by a $4 billion OpenAI extension and a new hyperscaler deal. He noted that CoreWeave expects to expand capacity from 470MW to 900MW by year-end, with 2.2GW contracted. Dede raised his fiscal 2025 sales estimate to $5.154 billion from $4.942 billion, reflecting $150 million in second-quarter outperformance and management's 4%-7% sequential growth guidance for the third quarter. He kept his fiscal 2026 forecast at $11.2 billion. He noted AI integration becoming mandatory for competitive enterprises and highlighted CoreWeave's new wins with Morgan Stanley MS and Goldman Sachs GS. Needham Emphasizes Backlog and Capacity Buildout Cikos said CoreWeave delivered a second straight quarter of substantial upside, beating his second-quarter revenue estimate of $1.09 billion with $1.21 billion and exceeding his adjusted operating income forecast of $163.6 million with $199.8 million. Management guided third-quarter revenue 2% above Street expectations at the midpoint. In contrast, full-year revenue guidance of $5.15 billion to $5.35 billion raised the midpoint by $250 million, well above the second-quarter beat of about $130 million. Cikos noted management's plan to exit 2025 with more than 900MW of active power, up roughly 90% from the second quarter's 470MW, with capital expenditures of $20 billion to $23 billion serving as a strong leading indicator for future revenue but a near-term margin headwind. He highlighted the growing backlog, up 86% year-over-year to $30.1 billion, supported by the $11.9 billion OpenAI deal, a $4 billion OpenAI expansion, and another hyperscaler contract to be reflected in third-quarter results. Cikos projected fiscal 2025 revenue of $5.1 billion and adjusted operating income of $821 million, and he flagged execution and supplier risks tied to the significant capacity buildout. Price Actions: CRWV stock is trading lower by 18.92% to $120.61 at last check Wednesday. Read Next: Palantir Nears Record High As Trump's $175 Billion Missile Defense Plan Opens Door To Massive SHIELD Contracts Photo by JackPress via Shutterstock CRWVCoreWeave Inc$122.00-18.0%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentumN/AGrowthN/AQualityN/AValue10.83Price TrendShortMediumLongOverviewCORZCore Scientific Inc$13.63-9.76%GOOGLAlphabet Inc$202.88-0.23%GSThe Goldman Sachs Group Inc$744.400.14%METAMeta Platforms Inc$784.28-0.72%MSMorgan Stanley$147.460.11%MSFTMicrosoft Corp$527.81-0.27%Market News and Data brought to you by Benzinga APIs

CoreWeave Shares Are Trading Lower Thursday: What's Going On? - CoreWeave (NASDAQ:CRWV)

CoreWeave, Inc. CRWV shares are trading lower Thursday on continued weakness after the company reported mixed second quarter financial results on Tuesday. What To Know: CoreWeave reported an adjusted loss of 27 cents per share, missing the consensus estimate of a 17 cent-loss. In addition, the company reported sales of $1.21 billion, beating the consensus estimate of $1.08 billion. Product revenue rose sharply in the quarter, supported by key customer wins across AI labs, hyperscalers and enterprises. Notable deals included a $4 billion expansion with OpenAI and new agreements with BT Group, Cohere, LG CNS, and Mistral. The company also brought its first NVIDIA GB200 NVL72 systems online for customers at scale and delivered the largest-ever MLPerf Training submission using Blackwell GB200 instances. CoreWeave completed its acquisition of Weights & Biases during the quarter and launched new tools to extend its cloud platform capabilities. These included Mission Control Integration for real-time cluster health management, W&B Inference for exploring open-source AI models and W&B Weave Online Evaluations for monitoring AI agents in production. Operating income totaled $19.2 million, representing a 2% margin. Net loss narrowed to $290.5 million, or $0.60 per share, from $323 million, or $1.62 per share, in the same period last year. FY25 Outlook: The company sees sales from $5.15 billion to $5.35 billion, versus the consensus estimate of $5.03 billion. Q3 Outlook: CoreWeave expects sales from $1.26 billion to $1.30 billion, versus the consensus estimate of $1.25 billion. Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments. Stifel analyst Ruben Roy maintained a Hold rating on CoreWeave and raised the price target from $115 to $120. Wells Fargo analyst Michael Turrin maintained an Equal-Weight rating on CoreWeave and raised the price target from $60 to $105. Macquarie analyst Paul Golding maintained a Neutral rating on CoreWeave and raised the price target from $65 to $115. B of A Securities analyst Brad Sills maintained a Neutral rating on CoreWeave and lowered the price target from $185 to $168. Related Link: Why Advance Auto Parts Stock Is Falling Today CRWV Price Action: At the time of publication, CoreWeave stock is trading 10.8% lower at $105.04, according to data from Benzinga Pro. Image via Shutterstock CRWVCoreWeave Inc$105.04-10.8%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentumN/AGrowthN/AQualityN/AValue10.49Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

CoreWeave Post-IPO Lockup Share Liquidations Begin As JPMorgan, Goldman Sachs, And Morgan Stanley Handle Several Block Sales

This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy. CoreWeave stock is heading for a sizable post-IPO lockup correction, judging from the quantum of block sales that are now hitting the tape. For the benefit of those who might not be aware, CoreWeave is a major cloud-based GPU-as-a-Service provider that distinguishes itself by providing early access to NVIDIA's latest products, and that too, at scale, thanks to its unique partnership with the GPU giant across its 33 AI data centers. CoreWeave plans to energize around 900MW (vs. just 470MW today) out of its 2.2GW contracted power capacity by the end of the year. Just 11 percent of CoreWeave's share float was available for trading when the company went public around three months back in a high-stakes IPO. This paradigm also limited the number of shares that could be sold short, owing to CoreWeave's sky-high cost for borrowing shares. Today, however, around 84 percent of CoreWeave's Class A shares have exited their lockup period, leading to several share block sales. For instance, according to CNBC, JPMorgan alone has handled block sales of around 5 to 6 million CoreWeave shares today at a price of around $97 per share. For context, the stock is currently trading at $98.77. Morgan Stanley and Goldman Sachs have handled similar block sale volumes, with the cumulative total potentially reaching 18 million shares (at the top end of the given range). Of course, NVIDIA tried to cushion the inevitable blow to CoreWeave in the aftermath of its lockup expiration by scooping up around 95,100 shares during its just-concluded quarter, bringing its total stake in CoreWeave to 24,277,573 (24.27 million) shares. At current prices, this stake is worth around $2.4 billion. As our regular readers would know, NVIDIA also acted as the anchor investor for CoreWeave's IPO. Of course, this circular relationship is not without its fair share of controversy. After all, the money that CoreWeave gets from NVIDIA's equity investments is then deployed by CoreWeave to buy more GPUs from NVIDIA. What's more, the company also pledges these GPUs as collateral to acquire additional debt financing. Meanwhile, CoreWeave shares have been under pressure ever since the company disclosed its earnings for its fiscal third quarter a few days back. While the company easily beat the consensus revenue estimate of $1.08 billion by reporting quarterly sales of $1.21 billion, analysts were quick to flag CoreWeave's $200 million in operating income, which was insufficient to cover the $200 million in interest expense that it incurred during the quarter. Bank of America was disappointed by CoreWeave's 4 percent quarter-over-quarter jump in order backlogs (excluding OpenAI). Do note that the company's total order backlog has now climbed to $30.1 billion from $25.9 billion in March, largely due to $4 billion in additional contracts from OpenAI. Interestingly, CoreWeave has not changed its CapEx guidance for the ongoing fiscal year despite hiking revenue guidance.

CoreWeave Stock Ramps 30% Into Q2 Earnings - CoreWeave (NASDAQ:CRWV)

CoreWeave, Inc. CRWV )) the AI-focused cloud infrastructure provider, is set to deliver its second-quarter earnings after the market closes on Tuesday. CoreWeave stock has climbed more than 30% over the past five days as investors anticipate the report. CRWV stock is up today. Track live prices here. Can CoreWeave Achieve Its Billion-Dollar Quarter? Investors and analysts are watching the rapidly expanding firm as it approaches its first-ever billion-dollar quarter. Consensus revenue estimates are around $1.08 billion, which would mark a pivotal milestone in CoreWeave's short history as a public company. Read Next: Retail Crowd's Top Stocks With Earnings This Week: Archer, Rigetti, Oklo And More Analysts expect CoreWeave to report quarterly losses of 17 cents per share, according to estimates from Benzinga Pro, signaling ongoing heavy investment in CoreWeave's platform as it races to scale up infrastructure for blue-chip AI clients such as Microsoft, Meta Platforms and IBM. The company's first quarter results revealed massive 420% year-over-year revenue growth, paired with losses expanding due to the company's aggressive expansion and capital spending. One major growth lever is CoreWeave's five-year, $11.9 billion agreement with OpenA. Another is the company's recent acquisition of Core Scientific, set to bring further scale and massive data center capacity across the U.S. and Europe. CoreWeave has also raised its full-year guidance to between $4.9 billion and $5.1 billion in revenue as demand for GPU-accelerated cloud solutions surges. Why Analysts Are Cautious Despite Record Growth Despite these tailwinds, analysts warn of ongoing volatility. Capital expenditure is projected between $3 billion and $3.5 billion this quarter and between $20 billion and $23 billion for 2025. Notably, HSBC analyst Abhishek Shukla initiated coverage on CoreWeave stock in late July with a Reduce rating and a price target of $32. The analyst said the stock appeared overvalued and Microsoft accounted for 72% of CoreWeave's revenue, with Microsoft and OpenAI together making up the majority of the company's backlog. CoreWeave stock has a consensus price target of $100.12 based on the ratings of 19 analysts, however, with a high of $200 issued by Argus Research. Read Next: Quantum Stock Tracker: D-Wave, IonQ Q2 Earnings Roll In Image: Shutterstock CRWVCoreWeave Inc$137.065.80%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentumN/AGrowthN/AQualityN/AValue11.51Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

CoreWeave Stock Plunges Nearly 10% In Wednesday Pre-Market: What's Going On? - CoreWeave (NASDAQ:CRWV), NVIDIA (NASDAQ:NVDA)

CoreWeave Inc CRWV stock plunged 9.82% during Wednesday pre-market, after its second quarter revenue exceeded projections but earnings per share (EPS) falling short. CoreWeave Beats Revenue Estimates But Posts Wider Loss The company reported a revenue of $1.21 billion for the second quarter, surpassing the $1.08 billion estimated by analysts. However, CoreWeave's adjusted loss per share for the quarter was 27 cents, missing the anticipated 17 cents per share loss. The company's operating margin fell from 20% to 2% over the past year, mainly due to $145 million in stock-based compensation, while its debt rose to $11.1 billion. CoreWeave's revenue jumped 300% year-over-year, with a $30.1 billion backlog, $1.19 billion in operating expenses, and $1.15 billion in cash by quarter's end. CEO and co-founder Michael Intrator commented, "Our strong second-quarter performance demonstrates continued momentum across every dimension of our business. We are scaling rapidly as we look to meet the unprecedented demand for AI." The shares also fell after-hours on Tuesday. "Demand is humming, but it is the cost of growth that tempered the stock down in aftermarket trading," Michael Ashley Schulman from Running Point Capital Advisors told Reuters. SEE ALSO: India's Modi Expected To Meet Trump In September To Discuss Trade Deal, Tariffs: Report CoreWeave's AI Growth Faces Shareholder Pushback CoreWeave, a data center operator in the U.S. and Europe since 2017, went public on Nasdaq in March at $40 per share, offering Nvidia NVDA GPU access to major tech and AI companies. The company's Q2 results reflect the company's resilience and growth in the face of increasing demand for AI and technology services. This demand has been a driving force behind the company's significant investments in AI infrastructure in the U.S. and its subsequent proposed acquisition of Core Scientific. However, the acquisition has faced opposition from shareholders like Two Seas Capital, who argue that the deal undervalues Core Scientific and exposes shareholders to undue risk. READ MORE: Nvidia Vs. AMD: Who Gets Hit Harder By The 15% China Revenue Tax? Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. CRWVCoreWeave Inc$136.20-8.44%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentumN/AGrowthN/AQualityN/AValue10.83Price TrendShortMediumLongOverviewNVDANVIDIA Corp$182.70-0.25%Market News and Data brought to you by Benzinga APIs

CoreWeave Reports Record Q2 Revenue | The Motley Fool

CoreWeave (CRWV 5.70%) reported second quarter 2025 earnings on August 12, 2025, delivering record revenue of $1.2 billion and adjusted operating income of $200 million, with contracted backlog reaching $30.1 billion and over 900 megawatts of active power deployment on track for year-end. Management announced rising demand across enterprise segments, substantive capital markets achievements, and revised full-year guidance, setting the stage for investor analysis on durability, competitive positioning, and structural headwinds in hyper-growth infrastructure cloud markets. Management disclosed that revenue more than doubled year-over-year, with $1.2 billion in revenue recognized, and a sequential increase of $4 billion in contracted backlog, hitting $30.1 billion in contracted backlog. This backlog figure includes substantial multi-year expansions, notably with OpenAI, and signals both large-scale and diversified client additions outside hyperscaler tech, such as financial services and healthcare. "We ended the second quarter with $30.1 billion in contracted backlog, up $4 billion from Q1 and doubling year to date. This includes not only the $4 billion expansion with OpenAI we previously discussed, but new customer wins ranging from large enterprise to AI startup. Importantly, we've also signed expansion contracts with both of our hyperscale customers in the past eight weeks. Our pipeline remains robust, growing increasingly diverse. Driven by a full range of customers from media and entertainment to healthcare to finance to industrials and everything in between. The proliferation of AI capabilities into new use cases and industries is driving increased demand for our specialized cloud infrastructure and services." -- Michael Intrator, CEO The unprecedented surge in both revenue and backlog indicates sustained, multi-industry demand acceleration and reinforces the attractiveness of CoreWeave's differentiated AI infrastructure in a supply-constrained market, supporting a multi-year runway for structural growth. The proposed acquisition of Core Scientific, alongside the closed acquisition of Weights and Biases, marks a deliberate move to control more of the value chain, with management projecting fully ramped annual run rate cost savings of $500 million by 2027 and immediate elimination of $10 billion in future lease liabilities. These moves build on vertically-integrated investments such as the $6 billion Pennsylvania data center, which expands the company's power and capacity footprint to more than 1.3 gigawatts upon integration. "The rationale behind the deal is quite simple and powerful. Verticalization creates tremendous operational and financial efficiencies that will strengthen our ability to serve our customers at scale. Owning the infrastructure will allow CoreWeave, Inc. Class A Common Stock to scale faster and more efficiently. The integration of Core Scientific meaningfully advances our capacity to operate one of the largest and most sophisticated AI cloud platforms in the world. Upon closing, CoreWeave, Inc. Class A Common Stock would own approximately 1.3 gigawatts of gross power capacity across Core Scientific's national data center footprint. With an incremental one gigawatt or more available for future expansion. This scale enhances our flexibility to take on new projects and meet accelerated customer demand. In addition, the acquisition would drive the immediate elimination of more than $10 billion in future lease liability overhead, as well as a more streamlined and efficient operating model. As a result, we anticipate $500 million in fully ramped annual run rate cost savings by 2027 benefiting both the Core Scientific and CoreWeave, Inc. Class A Common Stock shareholders directly." -- Michael Intrator, CEO CoreWeave's vertical integration directly enhances its capital efficiency. During the quarter, CoreWeave raised $6.4 billion via two high-yield offerings and a delayed draw term loan, with the most recent $2.6 billion facility financing the $11.9 billion OpenAI contract at SOFR plus 400 basis points -- 900 basis points lower than prior non-investment grade facilities for the most recent delayed draw term loan facility. This multi-instrument capital access, coupled with no maturities until 2028 except vendor obligations, positions the company to sustain outsized infrastructure deployment without liquidity constraints. "Since the beginning of 2024, we have secured over $25 billion of debt and equity to fund the build-out and scale the leading AI cloud platform. In May, we launched and closed our first unsecured high-yield offering of $2 billion which was upsized by $500 million due to strong demand. In July, we reentered the market and raised an additional $1.75 billion also oversubscribed, at a lower interest rate. More recently, closed our third delayed draw term loan facility. This $2.6 billion facility completes the financing for the $11.9 billion OpenAI contract we announced in March. Notably, the transaction was completed at a cost of capital of SOFR plus 400 a 900 basis point decrease from the non-investment grade portion of our prior facility DDTL2, and was the first one to be fully underwritten by top-tier banks. Together, these financings highlight our ability to drive a sustained reduction in our cost of capital and the increasing depth of access we have to the capital markets. Both of which were stated goals during our IPO." -- Nitin Agrawal, CFO Execution on capital raising at improving terms directly amplifies CoreWeave's ability to pursue rapid capacity expansion while safeguarding shareholder dilution, further reinforcing a robust growth and investment cycle. Management raised full-year 2025 revenue guidance to $5.15 billion to $5.35 billion, a $250 million increase from prior revenue guidance, while maintaining adjusted operating income outlook at $800 million to $830 million and CapEx expectations at $20 billion to $23 billion. Revenue for the third quarter is projected at $1.26 billion to $1.3 billion, with adjusted operating income guidance of $160 million to $190 million and CapEx of $2.9 billion to $3.4 billion. The company did not alter its multi-year infrastructure and margin expansion targets.

CoreWeave Shares Tumble. Is the Dip a Buying Opportunity? | The Motley Fool

The AI infrastructure provider is seeing huge demand for its products and services. CoreWeave's (CRWV 0.47%) stock has been on a roll since it debuted earlier this year, but shares of the artificial intelligence (AI) infrastructure provider plunged after it reported its Q2 results. The company originally priced its March IPO at $40 and didn't get a big initial pop, actually closing its first day of trading at breakeven. However, the stock later skyrocketed, hitting a high of $187 before pulling back. Let's take a closer look at the company's recent results and prospects to see if this pullback in a buying opportunity. For those unfamiliar with CoreWeave, it is a cloud computing company whose infrastructure is specifically designed to run AI workloads. The company's close relationship with Nvidia gives it access to that company's newest graphics processing units (GPUs). It also provides high-speed networking, storage, and managed software services. In Q2, the company saw its revenue surge, more than tripling from $395.4 million a year ago to $1.21 billion. That came in solidly ahead of the $1.08 billion analyst consensus, as compiled by LSEG. CoreWeave also raised its full-year revenue guidance, taking it to a range of $5.15 billion to $5.35 billion. That was a $250 million increase from its prior forecast. Despite the huge revenue growth, CoreWeave said that it continues to experience supply constraints with demand for its product and services far outstripping supply. The company is investing significantly to increase its capacity, with capital expenditures (capex) forecast to be between $20 billion and $23 billion this year. However, it said its biggest challenge is getting enough access to powered shells, which are data center facilities with a grid connection. This is one reason why CoreWeave is in the process of trying to acquire former Bitcoin miner Core Scientific for $9 billion in an all-stock transaction. The deal will give it control of extensive power infrastructure and a pipeline of contracted power. While CoreWeave is growing rapidly and seeing strong demand, it's also piling up debt as it builds out its infrastructure. It ended the quarter with $11.2 billion in debt and just $1.2 billion in cash. At the same time, it's been burning through a ton of cash. Its operating cash flow was negative $251.3 million in the quarter and negative $190.1 million in the first half. Meanwhile, free cash flow was negative $2.7 billion for the quarter and negative $4.1 billion through the first six months of the year. And with the company set to spend more than $16 billion in capex in the second half, its debt load is only going to grow significantly. CoreWeave is growing rapidly, and the company says its AI infrastructure is able to handle both AI training and inference workloads. That's important, as there is expected to be an eventual shift more toward inference. It's an AI infrastructure leader for AI start-ups, but it's also signed expansion agreements with its two important hyperscale customers, one of which is OpenAI, and it's seeing increasing demand from companies in non-tech sectors. With demand currently outstripping supply, growth is not a problem. The bigger question is whether the company is getting enough bang for its buck with its spending. Debt is piling up, as are interest expenses. The company recently significantly reduced its financing costs, but its debt costs are still not cheap. Meanwhile, profitability looks far off, and the company will need to continue to spend big in order to grow. While cloud computing can be a great business, CoreWeave does not have the luxury of the big three players -- Amazon, Microsoft, and Alphabet -- which have both scale and other strong businesses to provide the cash flow to cover their data center buildouts. The stock remains highly speculative at this time. I'd personally stay on the sidelines.

CoreWeave Stock Looks Like a Risky Bet | The Motley Fool

Artificial intelligence (AI) infrastructure provider CoreWeave (CRWV -15.82%) is tapping into incredible demand for AI computing capacity. The company leases its infrastructure to hyperscalers, AI labs and enterprises, a model that is driving rapid-fire revenue growth. CoreWeave reported revenue of $1.21 billion in the second quarter of 2025, up from less than $400 million in the prior-year period. CoreWeave is profitable on an operating basis, but just barely. The company squeaked out an operating income of $19.2 million in the second quarter, a big drop from the same period last year. Net income is deep in the red thanks to interest payments on CoreWeave's massive debt load, and cash flow is in negative territory as well. While CoreWeave is growing fast, profitability is a real problem. CoreWeave reported a net loss of $290.5 million, and an adjusted net loss of $130.8 million, in the second quarter. Interest payments consumed $267 million, putting the company on pace to shell out more than $1 billion in interest over the next year. CoreWeave has racked up more than $11 billion in debt, and it's paying high rates to service that debt. The company recently raised $2 billion by selling unsecured notes that carry an interest rate of 9.25%. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), which backs out depreciation and interest, soared to $753 million in the second quarter, but this metric is not a meaningful measure of anything. Depreciation is a real and growing expense for CoreWeave, and interest payments are eating up a growing proportion of revenue. Because CoreWeave is investing heavily in expanding its data center footprint, free cash flow is predictably negative due to heavy capital spending. However, cash flow from operations is also negative. Operating cash flow was a loss of $251 million in the second quarter, worse than the $118 million loss in the prior-year period. Cash flow can be volatile, depending on the timing of payments coming in and going out, but this is still concerning. AI is a genuinely useful technology, and it will likely change countless industries. But there's also a mountain of hype that's driving sky-high start-up valuations and massive infrastructure build-outs. An underwhelming release of OpenAI's latest GPT-5 AI model seems to throw cold water on some of the more audacious claims being made, like that AI "superintelligence" is just a stone's throw away. CoreWeave is funding its expansion and its current operations through debt. If the cracks that are starting to appear in the AI growth story widen, raising cash could become more difficult or more expensive. And if it turns out that the industry is overbuilding AI infrastructure, a real possibility given the massive commitments being made by tech giants and governments, the business model of leasing AI capacity would become even less profitable. CoreWeave is valued at around $57 billion, even after the stock tumbled following its second-quarter report. That's more than 20 times the company's book value, or assets minus liabilities. Even under a rosy scenario for the AI industry, it's hard to get behind that kind of valuation. CoreWeave is playing a critical role in the AI industry right now by providing AI computing capacity that's desperately needed by hyperscalers and other AI providers. But with profits and cash flow taking a dive, and the pace of progress in the AI industry potentially slowing down, CoreWeave stock looks like a risky bet.

CoreWeave Q2: Why I Changed From Bear To Bull (NASDAQ:CRWV)

Fundamentals in the Data Center market are intact and growing AI adoption should lead to strong expansion potential for CoreWeave going forward. Shares of CoreWeave (NASDAQ:CRWV) tanked 21% after the company reported stronger-than-expected revenue for the second fiscal quarter amid strong AI spending and surging demand for GPU-accelerated Data Center infrastructure. CoreWeave benefits from a massive revenue ramp in its core business which I am interested in a lot of technology and AI stocks like Google, Nvidia, AMD, Tesla and Amazon. Analyst's Disclosure:I/we have a beneficial long position in the shares of CRWV, NBIS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

CoreWeave shares drop as growing losses eclipse AI demand surge

CoreWeave shares sank 10 per cent in premarket trading on Wednesday after the Nvidia-backed company posted a bigger-than-expected loss, raising doubts about its ability to keep costs under check amid robust AI demand. Its results underscore the tension between its rapid revenue growth and mounting financial strain as operating expenses jumped nearly fourfold to US$1.19 billion in the second quarter. Analysts have turned skeptical of CoreWeave's excessive dependence on certain customers and its ability to grow profitably due to widening losses, heavy capital needs and deteriorating debt coverage. The company on Tuesday posted a net loss of $290.5 million, compared with analysts' average estimate of $190.6 million, according to data compiled by LSEG. "CoreWeave does not currently generate enough profit to pay all its debt holders, certainly not equity holders," D.A. Davidson analysts said. The company had around $8 billion in debt as of last year and had said in March that it would use about $1 billion of the IPO proceeds to repay debt. CEO Michael Intrator said the company is scaling rapidly to meet "unprecedented demand for AI," but noted that "accessing power shells capable of delivering the scale of infrastructure our clients require" remains the biggest constraint. "This continues to be a business that is not worth scaling," D.A. Davidson analysts said. CoreWeave operates 33 AI data centers in the U.S. and Europe, offering access to backer Nvidia's GPUs, which are highly sought after for training and running large AI models. Surging demand for its AI infrastructure helped the company top quarterly revenue estimates. Its stock price has jumped nearly three-fold since its IPO in March. Investors will seek clarity on the lock-up period related to the company's IPO, which could expire later this week compared to the typical six-month time frame. Sometimes, a stock is pressured when the lock-up ceases. Barclays analysts said the company's operating cash flow and capital expenditure for the quarter could be scrutinized going into the lock-up expiry.

CoreWeave beats quarterly revenue estimates on sturdy AI demand

(Reuters) -CoreWeave topped Wall Street estimates for second-quarter revenue on Tuesday, driven by accelerating demand for the Nvidia-backed AI cloud computing firm's services. The company offers access to data centers and Nvidia chips, which are highly coveted for by enterprises to train and run large AI models amid intense competition. CoreWeave, which currently has 33 AI data centers up and running across the U.S. and Europe, focuses solely on GPU-based operations. The company's operating expenses jumped to $1.19 billion in the quarter, compared to $317.7 million a year. Livingston, New Jersey-based CoreWeave's shares fell 6% in trading after the bell. The stock has gained nearly three-fold since its March IPO. Revenue backlog was $30.1 billion as of June 30, the company said. CoreWeave reported revenue of $1.21 billion for the second quarter, compared with analysts' average estimate of $1.08 billion, according to data compiled by LSEG. (Reporting by Juby Babu in Mexico City; Editing by Sriraj Kalluvila)

CoreWeave shares drop as growing losses eclipse AI demand surge

(Reuters) -CoreWeave shares fell more than 8% before the bell on Wednesday after the Nvidia-backed company posted a bigger-than-expected loss, raising doubts about its ability to keep costs under check amid robust AI demand. Operating expenses jumped nearly fourfold to $1.19 billion in the second quarter, underscoring the tension between its rapid revenue growth and mounting financial strain. Analysts have turned skeptical of CoreWeave's excessive dependence on certain customers and its ability to grow profitably due to widening losses, heavy capital needs and deteriorating debt coverage. One of its big customers, OpenAI, has been signing deals for additional compute capacity to build out its ChatGPT service. "CoreWeave does not currently generate enough profit to pay all its debt holders, certainly not equity holders," D.A. Davidson analysts said. The company had around $8 billion in debt as of last year and had said in March that it would use about $1 billion of the IPO proceeds to repay debt. With CoreWeave's lockup period expiring on Thursday, analysts expect the stock to remain volatile as company insiders will be allowed to sell their shares for the first time since the firm went public. "The initial stock action (is) likely more related to anticipation into the lock-up expiration later this week than any new fundamental concerns," Deutsche Bank analysts said. CEO Michael Intrator said the company is scaling rapidly to meet "unprecedented demand for AI", but noted that "accessing power shells capable of delivering the scale of infrastructure our clients require" remains the biggest constraint. CoreWeave operates 33 AI data centers in the U.S. and Europe, offering access to Nvidia's GPUs, which are highly sought after for training and running large AI models. Surging demand for its AI infrastructure helped the company top quarterly revenue estimates. Its stock price has jumped nearly three-fold since its IPO in March. (Reporting by Rashika Singh and Zaheer Kachwala in Bengaluru; additional reporting by Lance Tupper in New York; Editing by Arun Koyyur)

CoreWeave's Cloud Conundrum: Growth at Full Throttle, Losses in Tow

The Livingston, New Jersey-based company operates 33 data centres in the United States and Europe. It provides large-scale, GPU-optimized infrastructure -- originally built for crypto mining but now tailored for AI, machine learning, and visual effects -- serving major clients like Microsoft, Nvidia, and OpenAI. AI chips remain scarce amid an arms race for AI capacity. Demand visibility appears strong: CoreWeave's order backlog swelled to $30.1bn at the end of June, up from $25.9bn just three months earlier and 86% higher than a year ago. A $4bn contract expansion with OpenAI and fresh hyperscaler deals helped drive the increase, alongside a 600 MW boost in contracted power that takes the total to 2.2 GW. Not all growth is unconstrained. "Ultimately the most significant challenge right now is accessing power shells capable of delivering the scale of infrastructure that our clients are requiring," said CEO Michael Intrator. To ease the bottleneck, CoreWeave is pressing ahead with a $9bn all-stock acquisition of crypto miner Core Scientific, securing 1.3 GW of existing and future power capacity. The deal faces opposition from Core Scientific's largest shareholder. The spending needed to build such capacity is steep. Operating expenses jumped to $1.19bn in the quarter from $318m a year earlier, driven by higher infrastructure, technology, and administrative costs. Operating income fell to just $19.2m from $77.7m a year earlier, as interest expenses and capital requirements mounted. Even so, adjusted EBITDA rose to $753m, maintaining a 62% margin. Analysts at Jefferies described the results as "solid" and highlighted the hyperscaler expansions as proof of "unrelenting demand for high performance compute" and CoreWeave's "best-in-class capabilities." They cautioned that sequential backlog growth was smaller than some investors hoped, as the OpenAI expansion had been signed in May and was already priced into expectations. Still, they raised revenue forecasts for 2026 and 2027, arguing that backlog growth remains closely tied to available power -- and CoreWeave is adding capacity at a clip. The AI workloads driving this demand are themselves evolving. Chain-of-thought reasoning, increasingly used in large models, boosts accuracy but requires far more computation. That dynamic has turned companies like CoreWeave into both the enablers and captives of the AI surge: the more sophisticated the models, the higher the demand -- and the higher the infrastructure bill. CoreWeave now expects full-year revenue of $5.15bn to $5.35bn, up from its earlier $4.9bn to $5.1bn forecast, and reaffirmed its capital expenditure guidance. The share price -- up nearly threefold since its March IPO -- suggests investors still see plenty of runway. But with customer concentration high, costs surging, and physical capacity a binding constraint, the firm must prove it can turn scale into sustainable margins.