CoreWeave, an artificial intelligence-focused neocloud company, saw its shares rise sharply after reporting that second-quarter revenue more than doubled as demand for AI computing capacity from major technology companies continued to accelerate.
The company provides high-performance computing infrastructure used to develop and operate artificial intelligence systems. CoreWeave reported second-quarter revenue of $2.6 billion, representing a 112% increase from $1.2 billion in the same period a year earlier.
For the third quarter, CoreWeave expects revenue between $3.4 billion and $3.6 billion, reflecting continued demand from hyperscalers seeking additional AI computing capacity.
Despite rapid growth, the company remains unprofitable. Operating expenses more than doubled year over year and slightly exceeded revenue during the quarter.
CoreWeave’s AI infrastructure backlog expands
CoreWeave reported a revenue backlog of $104 billion as of June 30, excluding an additional $25 billion in new customer commitments secured during the third quarter.
CEO Michael Intrator highlighted the scale of demand, noting that the new commitments are nearly the size of the company’s entire backlog from the previous year.
“It gives you an idea of how much demand there is for our product and how much it’s growing,” Intrator said.
The rise of AI neocloud companies
Companies known as neoclouds, which specialize in GPU-based artificial intelligence infrastructure, have benefited significantly from the rapid expansion of AI applications.
Nebius, an Amsterdam-based AI infrastructure provider listed on Nasdaq, also saw shares rise after reporting strong commercial growth. The company said revenue increased 514% to $575 million, while the total value of contracts won quadrupled.
U.K.-based Nscale has also attracted significant private investment as it works toward an expected public offering, raising billions of dollars through equity, debt and project financing.
Broader AI infrastructure stocks also gained momentum following strong results from companies supporting the AI ecosystem, including Foxconn, the world’s largest contract electronics manufacturer, and Supermicro, which produces data center hardware.
CoreWeave invests heavily in AI expansion
CoreWeave CEO Michael Intrator said the company reached an important turning point during the quarter, but the rapid expansion has required significant investment and increased borrowing.
Operating expenses climbed to $2.6 billion from $1.2 billion a year earlier, resulting in an operating loss of $49 million compared with operating income of $19 million in the prior-year period.
For the full year, CoreWeave expects revenue between $12.4 billion and $13.2 billion and adjusted operating income of $960 million to $1.15 billion.
Major AI partnerships fuel growth
During the quarter, CoreWeave expanded partnerships with several major customers, including Bentley Systems, Grammarly, Isomorphic Labs and Sunday Robotics.
The company also strengthened strategic relationships with larger technology and financial firms. Jane Street committed $1 billion in strategic investments, while Meta announced an additional $21 billion in spending with CoreWeave.
Citi analysts said CoreWeave delivered a strong quarter, highlighting resilient AI demand, improved pricing power, growing software and token-related demand, and stronger-than-expected margins.
The analysts described the results as one of CoreWeave’s strongest quarters since becoming a public company, pointing to improved profitability guidance and greater customer and revenue diversification.
AI infrastructure demand continues to accelerate
CoreWeave’s growth reflects a broader trend as hyperscalers and technology companies continue investing heavily in AI infrastructure.
With increasing demand for GPUs, data centers and cloud-based AI computing, neocloud providers are becoming an important part of the expanding artificial intelligence ecosystem.
