CoreWeave revenue triples to $3.5 billion amid high capital spending

CoreWeave reported quarterly revenue of $3.5 billion, nearly tripling from the previous period and exceeding market expectations. The company slightly raised its full-year revenue forecast to approximately $13 billion. Despite the significant revenue growth, CoreWeave plans to invest up to $39 billion in data centers and chips this year, an amount more than three times its revenue. The stock had lost about 65% since its May high due to concerns over high debt and rising financing costs. Following the earnings release, the stock rose approximately 5% in after-hours trading. The company’s aggressive capital expenditure strategy highlights the intense competition for compute resources in the AI sector, even as investors scrutinize the sustainability of its debt levels.