CoreWeave Faces Capital Challenges Amid Surging Demand
CoreWeave (NASDAQ: CRWV) reported third-quarter revenue of $1.365 billion, marking a 134% increase year-over-year, with a backlog soaring to $55.6 billion as of September 30. This significant backlog highlights the explosive demand for AI computing, driven largely by its data centers optimized for Nvidia GPUs. However, the company also faces financial strains, with a net loss of $110.1 million and an operating income of $51.9 million due to a substantial interest expense of $310.6 million, up from $104.4 million the previous year.
Despite the impressive growth figures, CoreWeave’s revenue growth rate has begun to decelerate, dropping from 207% in the second quarter. This cooling growth raises concerns about the sustainability of its rapid expansion, especially in a capital-intensive business that requires significant ongoing investment. The company plans $12 billion to $14 billion in capital expenditures for the full year 2025, highlighting the need for further financing through debt or equity sales, which may dilute shareholder returns.
