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CoreWeave, a major provider of artificial intelligence (AI) computing power, secured $6.3 billion in GPUs from Nvidia and reported a revenue increase of 207% year-over-year, bringing its Q2 revenue to $1.2 billion. The company’s stock, initially priced at $40 during its IPO in March 2023, peaked at $183 in June and currently trades around $133.
Despite rapid growth, CoreWeave is facing challenges with profitability, posting a net loss margin of 24% in Q2. The company’s business model relies on renting out Nvidia GPUs, but the resource-intensive nature of these GPUs and increasing internal capabilities among major AI hyperscalers could impact future revenue opportunities. CoreWeave’s revenue backlog has grown to $30.1 billion, but turning that backlog into actual profits remains a concern.
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