(Reuters) -AI cloud provider CoreWeave beat Wall Street estimates for third-quarter revenue on Monday, benefiting from surging demand for its computing infrastructure that powers artificial intelligence workloads.
CoreWeave has cemented its position as a key infrastructure partner for the biggest names in technology, landing a string of multibillion-dollar deals, including from Meta Platforms and OpenAI, that underscore the voracious appetite for AI-powering graphics processing units.
The company’s third-quarter revenue more than doubled to $1.36 billion, beating analysts’ average estimate of $1.29 billion, according to data compiled by LSEG.
The period reflected a phase of explosive growth for the company, marked by major new customer agreements. In September, it signed a $14 billion deal to provide AI infrastructure to Meta and expanded a pact with OpenAI for $6.5 billion. Its contract with the ChatGPT creator now exceeds $22 billion.
CoreWeave shares, however, were down less than 1% in extended trading. The stock has been volatile since its debut earlier this year, as investors weighed massive contract wins against heavy spending and strategic setbacks.
The stock, initially priced at $40 per share in its IPO, has more than doubled in value as of Monday’s close, valuing the company at more than $50 billion.
CoreWeave’s aggressive expansion plans hit a snag in late October when crypto miner Core Scientific terminated a $9 billion all-stock merger agreement.
The company posted a loss of 22 cents per share, narrower than the $1.82 per share reported a year earlier. Adjusted third-quarter core profit of $838.1 million beat the estimate of $811.6 million.
(Reporting by Akash Sriram in Bengaluru; Editing by Shilpi Majumdar)
