CoreWeave Revenue Doubles, Backlog Hits $104 Billion

Neocloud provider CoreWeave announced that its revenue more than doubled in the second quarter, reaching $2.58 billion and surpassing analyst expectations. This surge in revenue is attributed to the high demand for its specialized AI infrastructure services. CEO Michael Intrator stated during a call with analysts on Tuesday that the company's near-term capacity is "effectively sold out." Coreweave also reported a significant increase in its revenue backlog, which represents deals not yet billed, growing by 246% year-over-year to $104.2 billion in the second quarter. Furthermore, the company noted that this backlog figure does not include approximately $25 billion in new customer commitments secured in early Q3. Following these financial results, Coreweave's stock experienced a surge of over 14% in after-hours trading on Tuesday. This performance comes after a volatile year for the company's share price, influenced by investor concerns about a potential AI bubble and the substantial capital expenditures being invested in AI infrastructure. Coreweave operates as a neocloud provider, constructing and managing data centers designed to run AI models, positioning itself as a competitor to established cloud computing giants such as Amazon Web Services, Microsoft Azure, and Google Cloud. The discussion surrounding potential overinvestment in AI intensified just prior to Coreweave's earnings report. On Monday, chip manufacturer Nvidia, which holds an approximate 13% stake in Coreweave, unveiled plans to mobilize $500 billion in financing for AI infrastructure. This initiative is a collaboration with financial firms Apollo Global Management Inc., Blackstone Inc., BlackRock Inc., and Brookfield Asset Management. Nvidia's shares saw a roughly 1% increase following its funding announcement and a slight rise after Coreweave released its financial results. Intrator highlighted on the earnings call that Coreweave is commanding "new highs" in pricing for access to Nvidia's advanced Blackwell and Vera Rubin chips, with even older chip inventory being rented at rates not seen in years. The company's revenue growth of 112% to $2.58 billion slightly exceeded the $2.56 billion estimated by analysts. Despite the robust demand and revenue growth, Coreweave incurred a net loss of $626 million in the second quarter, with $640 million of that loss attributed to increased capital expenditures.