CoreWeave targets 2028 profitability as AI demand stays strong

CoreWeave expects to turn profitable on an adjusted basis in the first half of 2028, executives said Tuesday, as the AI cloud firm sought to reassure investors amid strong demand and customer commitments supporting its debt-fueled expansion. Shares rose about 5% in volatile extended trading after the announcement. The stock had crashed over 40% in the past month on AI bubble fears, with concerns over heavy borrowing for data centers amid rising interest rates. The selloff also fueled broader AI trade worries, amplified by Democrats' midterm win signaling tighter regulation. CoreWeave has never turned a profit and had $46.9 billion in total debt as of September. CEO Mike Intrator disclosed $9 billion in customer prepayments expected over three months, with contracted revenue backlog at $132.5 billion. The company raised its 2026 revenue outlook to $13.0-$13.3 billion and lifted spending targets.