CoreWeave tops revenue estimates as AI boom supercharges cloud demand

Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST

May 7 : CoreWeave Inc beat analysts' estimates for quarterly revenue on Thursday, as the specialized cloud provider tapped into strong demand for its high-performance computing services used to train and deploy artificial intelligence models.

The company's shares were flat in volatile extended trading following a jump in operating expenses.

Demand for services from the so-called neoclouds, such as CoreWeave and peer Nebius, has skyrocketed as companies race to secure the computing capacity required to develop and run AI models.

The company reported total revenue of $2.08 billion for the first quarter, compared with analysts' average estimate of $1.97 billion, according to data compiled by LSEG.

CNA Games

Guess Word
Crack the word, one row at a time

Buzzword
Create words using the given letters

Mini Sudoku
Tiny puzzle, mighty brain teaser

Mini Crossword
Small grid, big challenge

Word Search
Spot as many words as you can
Show More
Show Less

Its operating expenses more than doubled to $2.22 billion in the quarter.

The business model for AI infrastructure is exceptionally capital-intensive. CoreWeave has been in a race to build out data center capacity to meet demand, a strategy that requires billions in upfront investment.

CoreWeave's core advantage lies in its specialized infrastructure and a close relationship with AI chip bellwether Nvidia, which grants it early and large-scale access to the most sought-after AI hardware.

This has made it a primary destination for AI startups and, increasingly, enterprise clients looking to bypass the capacity constraints at larger cloud providers.

Just in the last month, CoreWeave struck an expanded $21 billion deal for additional cloud computing capacity with Meta, a $6 billion deal with trading firm Jane Street and a third one with Anthropic.

The company had a revenue backlog of $99.4 billion as of March 31, compared to $66.8 billion at the end of December.

Newsletter

Week in Review

Subscribe to our Chief Editor’s Week in Review

Our chief editor shares analysis and picks of the week's biggest news every Saturday.

Sign up for our newsletters

Get our pick of top stories and thought-provoking articles in your inbox

Subscribe here

Get the CNA app

Stay updated with notifications for breaking news and our best stories

Download here

Get WhatsApp alerts

Join our channel for the top reads for the day on your preferred chat app

Join here