CoreWeave targets 2028 profitability as AI demand surges
NEW YORK: CoreWeave said on Tuesday it would become profitable on an adjusted basis in the first half of 2028, as the AI cloud company sought to reassure investors that strong demand and customer commitments will support its debt-fuelled expansion.
CoreWeave, an AI-focused cloud computing company, has announced it will become profitable by the first half of 2028, despite borrowing heavily for data center expansion. The company's shares jumped 5.0% in after-hours trading following the news. CoreWeave does not anticipate any significant risks to its data center buildout due to potential regulatory changes following Democrats' success in the US midterms.
The company currently has $9 billion in customer prepayments and deposits, which will help cover current and additional borrowing needs. CEO Mike Intrator stated that CoreWeave is not scaling back its international expansion plans, as the company has been planning for this expansion for over a year and a half. CoreWeave's third-quarter revenue increased by nearly 170% to $3.66 billion, surpassing analysts' estimates. The company expects its annual spending to be between $37 billion and $39 billion.
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- CoreWeave targets 2028 profitability as AI demand remains strong channelnewsasia.com
