Key facts
- CoreWeave's third-quarter revenue of $3.66 billion compared with an analysts' average estimate of $3.55 billion compiled by LSEG.
- The Nvidia-backed AI cloud company had more than $50 billion in debt as of June, the report said.
- Yields on CoreWeave's 2030 bonds were at about 15.2% and its five-year credit-default swaps at 1,135 points.
- CoreWeave operates about 52 data centers with global active capacity of more than 1.7 gigawatts.
- Brokerage Truist said higher pricing and rising customer prepayments will reduce AI cloud providers' dependence on outside capital.
- CEO Mike Intrator said in an October memo that CoreWeave's deal backlog more than covers its debt obligations.
CoreWeave reported third-quarter revenue of $3.66 billion, up from $1.37 billion a year earlier, the AI cloud company said on November 10. Analysts' average estimate was $3.55 billion, according to data compiled by LSEG, so the result beat the consensus figure.
The $27 billion Nvidia-backed company has never turned a profit, according to LSEG data, and had more than $50 billion in debt as of June. Yields on its 2030 bonds were at about 15.2%, and its five-year credit-default swaps, a measure of perceived default risk, traded at 1,135 points, the report said without dating the levels.
CoreWeave's stock fell more than 40% over the month before the report as the company became the focal point of investor concern about borrowing to buy chips, land and energy for AI data centers that generate little return until they are leased. The report said the selloff fed a wider loss of confidence in AI stocks, which it said was amplified after the Democrats' midterm win as investors assess the potential for tighter regulation of US data-center construction.
Recent results from hyperscalers pointed to delays in data-center projects and a slower rise in spending, the report said. CoreWeave's customers include Microsoft, Meta, OpenAI and Anthropic. Bloomberg News reported that Microsoft tightened oversight of some data-center projects from neocloud companies Nebius, IREN and Nscale as it focuses on expanding its own data centers.
CoreWeave operates about 52 data centers globally using advanced Nvidia chips, with global active capacity of more than 1.7 gigawatts, which the report said is enough power for more than 1.2 million US homes. Some analysts said financing concerns about the company are overblown, citing its record on execution and financing. Brokerage Truist said market sentiment had become disconnected from improving economics at AI cloud providers, arguing that higher pricing and rising customer prepayments will reduce their dependence on outside capital. CEO Mike Intrator said in a memo in October that the firm's deal backlog is large enough to more than cover its debt obligations.