CoreWeave turns to prepayments and shorter contracts to fund AI growth
Original title: CoreWeave turns to customer prepayments, shorter contracts to fund AI growth
Third-quarter revenue was $3.66 billion, up 168%, with a $709 million loss and a $132.5 billion backlog.
CoreWeave's third-quarter results show a shift toward customer prepayments, contract-backed loans, and shorter deals. Revenue was $3.66 billion, up 168% year over year, with a $709 million net loss and $846 million in interest expense. CEO Michael Intrator said the company will not use unsecured debt at current yields and expects about $9 billion in prepayments and deposits over three months.
Unconfirmed: The article treats continued demand and pricing power as unproven, and TechCrunch was still seeking detail on the loan facility.
- Most remaining buildout would be financed by loans against specific customer contracts.
- More than $3 billion of expected prepayments covers capacity already built.
- Prices rose about 25% in July and another 10% later that quarter.
- Short-term capacity sells above $40 million per megawatt annually.
- Some bond yields topped 15% last month; August's DDTL 5.5 loan was $2.6 billion.
From the original article
3 min read at techcrunch.com
CoreWeave is increasingly asking customers to pay upfront, borrowing against specific contracts, and even looking to short-term deals that could lead to higher prices, according to the company’s third-quarter earnings.
By Rebecca Bellan · techcrunch.com
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