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CoreWeave Eyes Profitability Amidst AI Debt Fears
11 Nov
Summary
- CoreWeave targets adjusted profitability in early 2028.
- The AI cloud firm has $9 billion in customer prepayments.
- Contracted revenue backlog reached $132.5 billion by September.
CoreWeave, an AI cloud firm supported by Nvidia, anticipates achieving adjusted profitability in the first half of 2028. This projection aims to stabilize investor confidence amid concerns about the company's debt-fueled expansion and increasing interest rates.
Executives highlighted that CoreWeave has secured $9 billion in customer prepayments and deposits, which are slated to be received over the next three months. The company stated it has no immediate need to access unsecured debt markets at current yields. Its contracted revenue backlog significantly increased to $132.5 billion by the end of September from $104 billion at the close of June.
In the third quarter, CoreWeave's revenue surged by nearly 170% to $3.66 billion, surpassing analyst expectations. The company also raised its revenue forecast for 2026, now expecting between $13.0 billion and $13.3 billion. Quarterly capital spending also saw a substantial rise, jumping to $14.5 billion from $9.4 billion in the previous quarter.
