AI-fueled revenue growth surpasses predictions, but heightened losses cause share price decline for CoreWeave
CoreWeave's Q2 Revenue Soars Amidst Financial Challenges
CoreWeave, a leading provider of AI cloud infrastructure, has reported a remarkable 207% year-over-year increase in Q2 2025 revenue, reaching $1.21 billion. This growth is attributed to the surging demand for AI inference, particularly for models using chain-of-thought reasoning [2][4].
However, this growth comes with financial strain. Operating expenses nearly quadrupled to $1.19 billion, and the company reported a large net loss of $290.5 million in Q2 2025, exceeding analyst expectations. High capital expenditures (over $2.9 billion) and a heavy debt load (around $8 billion) contribute to ongoing profitability challenges and investor skepticism [2][4].
CoreWeave currently operates 33 AI-focused data centers with 470MW active power and 2.2GW of contracted power. The company expects Q4 2025 capex to exceed the combined total of the previous three quarters, signaling aggressive expansion to meet AI infrastructure demand [1]. This includes purpose-built greenfield AI data center projects slated to come online in 2026 [3].
The company has raised substantial capital through debt and equity, raising over $25 billion in 2025, which fuels expansion but adds financial risk [4]. CoreWeave has expanded contracts with hyperscalers to meet their growing internal and external demand. The company's revenue backlog as of the end of June stands at $30.1 billion, suggesting demand visibility beyond 2025 [4].
eMarketer analyst Jeremy Goldman noted that the concentration in mega-customers could potentially be a single point of failure. The deal with Core Scientific, a crypto miner, will help CoreWeave secure Core Scientific's entire 1.3 GW power under contract and future pipeline [5].
Despite the financial challenges, CoreWeave's CEO, Michael Intrator, remains optimistic about the company's growth. He stated that the company is scaling rapidly to meet AI demand and that the quality of intelligence improves significantly with chain-of-reasoning models, but they require an incredible increase in computing power [2].
The outlook’s positive revenue guidance signifies confidence in future growth, but investors remain cautious due to the high leverage and cash burn involved [2][4][5]. Two Seas Capital, the largest shareholder of Core Scientific, has stated it will vote against the sale [6].
References:
- CoreWeave Q2 2025 Earnings Release
- CoreWeave's Q2 2025 Results: A Deep Dive
- CoreWeave's Greenfield AI Data Center Projects
- CoreWeave's Q2 2025 Earnings Call Transcript
- CoreWeave's All-Stock Deal for Core Scientific
- Two Seas Capital's Statement on Core Scientific Sale
Artificial Intelligence, underpinned by CoreWeave's AI cloud infrastructure, is the primary driver for the 207% year-over-year increase in Q2 2025 revenue, with a notable rise in demand for AI inference using chain-of-thought reasoning models. To expand and accommodate this rising demand, CoreWeave is aggressively investing in greenfield AI data center projects and expect Q4 2025 capex to surpass the combined total of the previous three quarters.
