What is CoreWeave's business model?

CoreWeave operates a cloud computing service that rents out high-performance GPU computing power to clients focused on AI.

Why is CoreWeave spending so much money?

CoreWeave is investing heavily in capital expenditures to acquire advanced GPUs and build out data center capacity to meet the high demand for AI computing.

Is CoreWeave profitable?

Currently, CoreWeave is not profitable, with significant free cash flow losses reported due to its high capital expenditures and operational costs.

Home / Business and Economy / CoreWeave Stock: AI Cloud Giant's Wild Ride

CoreWeave Stock: AI Cloud Giant's Wild Ride

15 Dec

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Summary

CoreWeave's stock has surged over 125% since its March IPO.
The AI cloud company spent $1.9 billion on capital expenditures in Q3.
CoreWeave has burned over $8 billion in free cash flow in the past year.

CoreWeave Stock: AI Cloud Giant's Wild Ride

CoreWeave, a cloud computing service specializing in artificial intelligence, has experienced a dramatic stock performance in 2025. Since its initial public offering in March, the stock price has increased by more than 125%, though it has since fallen from its June peak.

The company provides advanced GPU computing power to major AI clients, including OpenAI, Microsoft, and Meta Platforms. However, this rapid growth comes at a significant cost. In the third quarter, CoreWeave's capital expenditures reached $1.9 billion, with total spending over the past 12 months doubling its revenue.

Analysis of CoreWeave's financial health reveals substantial losses, with free cash flow showing over $8 billion burned in the last year. While demand for AI computing remains high, the company's current operational model is proving highly unprofitable. Future profitability hinges on managing expenses once current capacity build-outs are complete.