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Michael Intrator, co-founder and chief executive officer of CoreWeave, appears at the Nasdaq MarketSite in New York on March 28, 2025. CoreWeave raised $1.5 billion in its initial public offering, a downsized deal that reflects how stock market volatility is hurting demand for even highly anticipated listings.
Michael Nagle | Bloomberg | Getty Images
CoreWeave, a specialized cloud provider focused on serving the burgeoning artificial intelligence sector, announced robust third-quarter earnings on Monday, exceeding analyst expectations and underscoring the escalating demand for AI-optimized infrastructure.
Here’s a breakdown of the key figures compared to LSEG consensus estimates:
- Earnings: Loss of 22 cents per share
- Revenue: $1.36 billion vs. $1.29 billion expected
The company’s revenue demonstrated impressive year-over-year growth, surging 134% from $583.9 million in the same quarter of the previous year, according to a company statement. While CoreWeave reported a net loss of $110 million, this marks a significant improvement compared to the $360 million loss incurred in the corresponding quarter last year, indicating improved operational efficiency as the company scales.
CoreWeave’s ascendancy is intrinsically linked to the exponential growth of the AI industry. The company strategically rents out high-performance Nvidia GPUs, catering to the computationally intensive demands of AI model training and inference. Notably, CoreWeave has secured significant partnerships with leading cloud infrastructure giants such as Google and Microsoft. This strategic positioning allows CoreWeave to capitalize on the increasing need for specialized AI infrastructure that traditional cloud providers may not be fully equipped to handle.
The company’s contracted backlog offers a compelling outlook, currently standing at a substantial $55.6 billion, representing 2.9 gigawatts in contracted power capacity. This is a material leap from the 2.2 gigawatts reported on June 30, signaling the growing confidence of clients in CoreWeave’s capacity to meet their burgeoning AI infrastructure requirements. This backlog provides strong revenue visibility and supports further investment in data center capacity and advanced GPU technologies.
Key highlights from the quarter include a $6.5 billion expansion of its existing partnership with OpenAI, which relies on CoreWeave’s infrastructure to power its AI models, and a six-year agreement with Meta, valued at up to $14.2 billion. These landmark deals demonstrate CoreWeave’s growing market dominance within the AI infrastructure landscape. Adding to this momentum, CoreWeave also clinched its sixth contract with a leading hyperscale cloud provider, solidifying its position as a trusted partner for companies at the forefront of AI innovation.
CoreWeave’s public market debut occurred in March with an initial offering at $40 per share on the Nasdaq. The stock has since appreciated significantly, closing Monday at $105.61, representing a substantial 164% return for investors since the IPO. The Nasdaq Composite Index has only delivered 32% over the same time frame, showcasing investor enthusiasm for CoreWeave’s growth prospects. However, CoreWeave shares experienced a slight dip in extended trading on Monday, potentially reflecting profit-taking after the earnings announcement.
Shortly after its IPO, CoreWeave announced plans to acquire data center infrastructure operator Core Scientific for $9 billion in what was intended to be an all-stock transaction. The deal aimed to bolster CoreWeave’s infrastructure footprint and operational capabilities. However, Core Scientific shareholders ultimately rejected the proposed acquisition, posing a setback to CoreWeave’s expansion strategy. The failed acquisition underscores the challenges of inorganic growth in the rapidly evolving data center market.
Executives were scheduled to discuss the Q3 results with analysts and offer forward-looking guidance during a conference call that commenced at 5 p.m. ET. Investors will be keenly watching for insights into capacity expansion plans, new product offerings, and the overall strategic direction of the company. CoreWeave’s management needs to articulate clearly how it will balance rapid growth with profitability, especially given the significant capital expenditures required to support its expanding AI infrastructure.
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