CoreWeave leans on prepayments and short-term deals to finance AI expansion

CoreWeave is increasingly asking customers to pay upfront, borrowing against specific contracts, and pursuing short-term deals to fund its AI infrastructure growth, according to its third-quarter earnings reported Tuesday. The neocloud reported $3.66 billion in revenue, up 168% year-over-year, but posted a $709 million net loss and $846 million in quarterly interest expense. CEO Michael Intrator said the company will avoid unsecured debt, instead relying on contract-backed loans and expecting $9 billion in customer prepayments over three months. CoreWeave raised prices by 25% in July and 10% later in the quarter, with short-term capacity selling at over $40 million per megawatt annually versus $20-25 million for longer contracts. Bond yields above 15% reflect investor concerns about debt-funded buildouts, highlighting reliance on unproven sustained demand.