AI cloud provider CoreWeave (CRWV) reported its second-quarter earnings after the bell on Tuesday, narrowing its losses per share and meeting revenue expectations for the quarter. Shares rose more than 8% following the announcement. “CoreWeave reached a major inflection point this quarter as our scale began to translate into increased operating leverage,” CEO Michael Intrator said in a statement. “Customer demand is accelerating as enterprise adoption expands and we continue to deepen our technology platform.” For the second quarter, CoreWeave posted a loss per share of -$1.14 on revenue of $2.5 billion. Wall Street was expecting losses per share of -$1.41 on revenue of $2.5 billion, according to Bloomberg analyst consensus estimates. CoreWeave shares have plunged more than 30% since it last reported results in May, amid concerns about revenue growth and its spending plans. The company’s adjusted operating income in the second quarter came in at $128 million, better than the consensus estimate of $66 million. CoreWeave is investing billions in building data centers to house AI chips that companies like Meta (META) and Anthropic (ANTH.PVT) rent to power their own AI models and services. The company’s revenue portfolio reached $104 billion, in line with expectations. But the company said the figure does not include commitments of $25 billion for the third quarter. CoreWeave founder and CEO Michael Intrator attends his company’s initial public offering on the Nasdaq Market in New York City on March 28, 2025. (Reuters/Brendan McDermid) · REUTERS/Reuters CoreWeave faces new competition in the form of SpaceX (SPCX), which has begun leasing billions of dollars worth of computing capacity from its own data centers to Anthropic and Google (GOOG, GOOGL). Meta is also considering entering the space, and CEO Mark Zuckerberg teased the idea in previous investor calls and said in an interview with Bloomberg that leasing capacity could make sense for the company. Companies around the world are eager to get their hands on as much computing as possible to power their various AI initiatives. And as demand for chips and memory outstrips supply, organizations are willing to pay a premium to companies like Meta to access a portion of their capacity. For a company looking to offset some of the billions it spends developing its AI, leasing capacity could make sense. However, that could put pressure on CoreWeave in the future. Subscribe to Yahoo Finance’s Week in Tech newsletter. · Yahoo Finance Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X at @DanielHowley. Click here for the latest tech news impacting the stock market. Read the latest financial and business news from Yahoo Finance
