Artificial intelligence infrastructure provider CoreWeave reported better-than-expected earnings in Q1, according to the company’s first earnings release since going public. Revenue soared 420% in the quarter ending March 31, compared to 737% growth for all of 2024, according to a statement.
Despite the growth, CoreWeave saw a net loss of $314.6 million, up from a loss of $129.2 million a year earlier. This loss is partly attributed to stock-based compensation related to its initial public offering (IPO).
The company’s stock initially rose when the report was released, however, it reversed course and ended up down about 5% in extended trading.
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CoreWeave sees $4.9 billion to $5.1 billion in 2025 revenue, which implies a growth rate of 363%. That growth requires hefty capital expenditures. The company expects capital expenditure of $20 billion to $23 billion for the year. This reflects impact from OpenAI as well as other factors. Analysts surveyed by LSEG had anticipated $4.61 billion in full-year revenue.
Mike Intrator, CoreWeave’s CEO said that higher capital spending than planned has nothing to do with increasing prices. “That is a real articulation of new uptake, new clients coming on board to buy more infrastructure from us over the balance of the year,” he said.
Earlier this year, OpenAI had signed a $12 billion agreement with CoreWeave. This deal involved OpenAI receiving $350 million worth of equity in CoreWeave, aiming for CoreWeave delivering AI infrastructure to OpenAI, expanding the AI research giant’s compute capacity for training and delivering its latest models at scale for its hundreds of millions of users around the world.
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On Friday, CoreWeave announced a new $4 billion deal with OpenAI to grow its cloud computing capacity for handling artificial intelligence, according to Bloomberg. It is not known yet if this deal was part of the initial $12 billion agreement with OpenAI or a new addition.
CoreWeave currently competes with cloud providers like Amazon, by renting GPU access out to Nvidia. Companies like Google and Microsoft have also come to depend on CoreWeave.