CoreWeave Revenue Surges on AI Demand but Wider Loss Hits Shares

CoreWeave's quarterly revenue soared past estimates as artificial intelligence adoption fueled demand for its cloud services, yet shares tumbled 9% in premarket trading after reporting a larger-than-expected net loss. The AI infrastructure provider operates 33 data centers across the U.S. and Europe, offering coveted access to Nvidia's chips for training large AI models.

Second-quarter revenue reached $1.21 billion, exceeding the $1.08 billion consensus, while the company's backlog grew to $30.1 billion from $25.9 billion in March. "Demand is humming, but it is the cost of growth that tempered the stock," noted Running Point Capital Advisors' Michael Ashley Schulman. Operating expenses ballooned to $1.19 billion from $317.7 million year-over-year.

The $290.5 million net loss nearly doubled analysts' $190.6 million forecast. CEO Michael Intrator emphasized rapid scaling to meet AI demand, citing power infrastructure as the primary constraint. The disconnect between booming revenue and widening losses reflects the capital-intensive nature of AI infrastructure expansion.