CoreWeave beats third-quarter revenue estimates on AI computing boom
(Reuters) -AI cloud provider CoreWeave beat Wall Street forecasts in third-quarter revenue on Monday, benefiting from rising demand for computing infrastructure artificial intelligence workloads.
CoreWeave Meta Platforms and OpenAIThis underscores the insatiable appetite for AI-powered graphics processing units.
The company’s third-quarter revenue more than doubled to $1.36 billion, beating analysts’ average estimate of $1.29 billion, according to data compiled by LSEG.
This period reflected an explosive growth phase for the company, marked by major new customer deals. In September, it signed a $14 billion deal to provide AI infrastructure for Meta and expanded the deal with OpenAI to $6.5 billion. Its contract with the creator of ChatGPT currently exceeds $22 billion.
However, CoreWeave shares lost less than 1% in extended trading. The stock has been volatile since its launch earlier this year as investors weigh big contract wins against heavy spending and strategic disruptions.
The stock, which was priced at $40 per share in the initial public offering, more than doubled in value as of Monday’s close, giving the company a value of over $50 billion.
CoreWeave’s aggressive expansion plans hit a snag in late October when crypto miner Core Scientific terminated its $9 billion all-stock merger deal.
The company reported a loss of 22 cents per share; This was down from the $1.82 per share reported a year ago. Adjusted third-quarter core profit of $838.1 million beat estimates of $811.6 million.
(Reporting by Akash Sriram in Bengaluru; Editing by Shilpi Majumdar)
