The Nvidia-backed artificial intelligence cloud provider is moving to reassure markets after a 40 percent stock drop spurred by bubble fears and high debt burdens. Backed by major technology partners, the company aims to use secured customer deposits and massive contracted backlogs to fund its aggressive infrastructure buildout without relying on high-yield debt markets. Third-quarter revenue surged nearly 170 percent to $3.66 billion, beating analyst estimates and triggering a 5 percent bump in extended trading. The firm also lifted its 2026 revenue guidance to between $13.0 billion and $13.3 billion.
Key points
The firm plans to service debt and fund data-center buildouts using cash flow from commit…: The firm plans to service debt and fund data-center buildouts using cash flow from committed contracts rather than high-yield unsecured debt.
A projected influx of $9 billion in customer prepayments and deposits over the next three…: A projected influx of $9 billion in customer prepayments and deposits over the next three months will provide near-term liquidity.
CoreWeave narrowed its quarterly loss to 95 cents per share while beating revenue forecas…: CoreWeave narrowed its quarterly loss to 95 cents per share while beating revenue forecasts and raising its 2026 sales outlook.
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Nov 10 : CoreWeave expects to turn profitable on an adjusted basis in the first half of 2028, executives said on Tuesday, as the AI cloud firm sought to reassure investors that strong demand and customer commitments could support its debt-fueled expansion.
Shares of the Nvidia-backed company were last up about 5 per cent in volatile extended trading.
The stock has crashed more than 40 per cent in the past month after CoreWeave emerged as the focal point of growing AI bubble fears, with investors worried about heavy borrowing for setting up data centers against the backdrop of rising interest rates and the pace of returns on the massive investments.
The steep selloff also triggered a broader crisis of confidence in the AI trade, a sentiment amplified by the Democrats' sweeping win in the US midterms that has fueled expectations of tighter regulation in the data-center build-out.
Earlier in the day, AI juggernaut Anthropic kicked off a roadshow for its share sale at a lower target valuation than earlier estimates.
CoreWeave has never turned a profit, according to data compiled…
Escalating infrastructure and development costs continue to weigh heavily on the artificial intelligence sector as profitability remains elusive for top players. While top-line growth surged, the widening deficit underscores the massive capital required to sustain advanced model operations. These disclosures coincide with heightened investor scrutiny over fiscal viability, setting a critical backdrop for rival offerings across the market.
The National Institute of Education at Nanyang Technological University has updated its postgraduate curriculum to address the pedagogical challenges posed by generative technology in classrooms. Designed for educators, the programme examines ways to deploy artificial intelligence while preserving critical thinking, student agency, and collaborative engagement. This shift reflects growing institutional demand to ensure automated assistance deepens rather than undermines foundational learning processes.
Underwriters handling the public market debut are evaluating higher target metrics to capitalize on strong interest from the investment community. Adjusting the initial terms would push the artificial intelligence developer into a market capitalization tier of at least $1.5 trillion. This potential shift reflects significant institutional appetite for premier artificial intelligence assets ahead of the offering.