CoreWeave delivered a breakout Q1 performance in its first quarter as a public company, reporting revenue of $ 982 million, up an eye popping 420% year over year and beating analyst expectations by $ 122 million. The explosive growth was fueled by a sharp increase in demand for high performance computing infrastructure, particularly for AI workloads
However, the company’s aggressive expansion came at a cost. Net losses deepened to $ 1.49 per share, significantly wider than the Street's expected loss of $0.22. The shortfall was largely due to a sharp ramp-up in capital expenditures, as CoreWeave accelerates infrastructure investments to meet the surging demand from major AI players
CoreWeave signed a massive $4 billion contract with OpenAI, pushing its total backlog to $26 billion. The deal highlights CoreWeave’s growing importance as a critical player in the AI compute supply chain.
That said, not everything was bullish. The company’s Q2 operating income guidance of $ 140 to $ 170 million came in below expectations, and management now expects 2024 capex to rise to between $ 20 and $ 23 billion. The scale and speed of investment have raised investor concerns about cash burn and long-term capital efficiency
Still, bulls remain optimistic. CoreWeave is now tightly integrated with top-tier clients including OpenAI, Microsoft, and Nvidia, and continues to onboard new hyperscale customers. Management projects revenue to hit $5 billion in 2025, betting that front-loaded infrastructure spending will establish CoreWeave as the foundational layer of the AI compute stack
CoreWeave is prioritizing scale and strategic positioning over short-term profitability. The company is making an aggressive play to own the infrastructure backbone of the AI boom high risk, potentially high reward as the GPU driven economy continues to expand
Is CoreWeave making the right move by going all in on AI infrastructure now, or are they running too hot, too fast?
However, the company’s aggressive expansion came at a cost. Net losses deepened to $ 1.49 per share, significantly wider than the Street's expected loss of $0.22. The shortfall was largely due to a sharp ramp-up in capital expenditures, as CoreWeave accelerates infrastructure investments to meet the surging demand from major AI players
CoreWeave signed a massive $4 billion contract with OpenAI, pushing its total backlog to $26 billion. The deal highlights CoreWeave’s growing importance as a critical player in the AI compute supply chain.
That said, not everything was bullish. The company’s Q2 operating income guidance of $ 140 to $ 170 million came in below expectations, and management now expects 2024 capex to rise to between $ 20 and $ 23 billion. The scale and speed of investment have raised investor concerns about cash burn and long-term capital efficiency
Still, bulls remain optimistic. CoreWeave is now tightly integrated with top-tier clients including OpenAI, Microsoft, and Nvidia, and continues to onboard new hyperscale customers. Management projects revenue to hit $5 billion in 2025, betting that front-loaded infrastructure spending will establish CoreWeave as the foundational layer of the AI compute stack
CoreWeave is prioritizing scale and strategic positioning over short-term profitability. The company is making an aggressive play to own the infrastructure backbone of the AI boom high risk, potentially high reward as the GPU driven economy continues to expand
Is CoreWeave making the right move by going all in on AI infrastructure now, or are they running too hot, too fast?
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.