CoreWeave's revenue rose 112% year on year to $2.58 billion, yet adjusted operating income fell to $128 million from $200 million. Margins slid from 16% to 5%, and free cash flow ran to negative $5.7 billion as capital spending accelerated. The stock still jumped double digits after hours, with investors focused on a $104 billion revenue backlog rather than the earnings.
CoreWeave’s $8.5 billion financing highlights a major shift in Wall Street’s approach to digital infrastructure funding, moving from crypto-backed lending to AI-driven cash flow models.
NYU Stern Kerschner Family Chair in Finance Education Aswath Damodaran discusses the AI investment cycle and says smaller companies like CoreWeave are in 'danger territory' when it comes to debt, but does not see a concern for larger companies. He speaks with Emily Graffeo and Romaine Bostick on 'The Close.'
CoreWeave has signed a $6 billion deal with Jane Street to supply GPU-based computing power for trading and research operations.
