CoreWeave turns to customer prepayments, shorter contracts to fund AI growth

CoreWeave is changing how it finances its rapid expansion, seeking customer payments up front and loans backed by specific contracts rather than relying on unsecured debt. The approach may reduce its immediate borrowing needs and help fund infrastructure, but it depends on strong demand and prices continuing.

The AI computing provider reported $3.66 billion in third-quarter revenue, up 168% year on year, alongside a $709 million net loss and $846 million in interest expense. It expects about $9 billion in customer prepayments and deposits over the next three months and has a $132.5 billion backlog. CoreWeave has raised prices and is directing more capacity to shorter-term deals, which can bring in over $40 million per megawatt annually, compared with $20 million to $25 million for new four- and five-year contracts.