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2w ago

CoreWeave Reports 420% Revenue Growth but Faces Investor Concerns Over Aggressive Spending

The Nvidia-backed AI infrastructure provider's Q1 earnings show surging demand but highlight challenges with widening losses and $23 billion in planned capital expenditures.

A screen displays the company logo for CoreWeave, Inc., Nvidia-backed cloud services provider, during the company's IPO at the Nasdaq Market, in New York City, U.S., March 28, 2025. REUTERS/Brendan McDermid/File Photo

Overview

  • CoreWeave's Q1 revenue reached $981.6 million, a 420% year-over-year increase, surpassing analyst estimates of $853 million.
  • The company reported a net loss of $314.6 million, driven partly by $177 million in IPO-related stock-based compensation costs.
  • CoreWeave's revenue backlog stands at $25.9 billion, including $11.2 billion from a five-year contract with OpenAI, which recently expanded with an additional $4 billion agreement.
  • The company plans up to $23 billion in capital expenditures for 2025, exceeding analyst expectations and raising concerns about profitability and debt sustainability.
  • CoreWeave's stock has been volatile, initially surging on strong demand signals but retreating as investors weigh the risks of its aggressive growth strategy.