CoreWeave, a major player in tech infrastructure, reported earnings that disappointed investors, leading to a stock plunge over 20%. Despite revenue tripling to $1.2 billion, the company incurred a loss of $131 million in the last quarter. Analysts expressed concern over CoreWeave's inability to generate sufficient profit to meet its debt obligations. Future projections also fell below expectations, with operating income estimates between $160-190 million. The fallout from CoreWeave’s struggles may affect its customers, including Nvidia and Microsoft.
For years now, big tech and its financial backers have been blowing past the warning signs that human-level AI could turn out to be a pipe-dream, at best.
On Tuesday, datacenter and tech infrastructure startup CoreWeave posted its earnings results, as well as its forecast for the future. To say investors weren't happy with the results might be an understatement.
The stock shock comes from a reported loss of $131 million over the last three months, despite the fact that the company's revenue has nearly tripled from last year - to a whopping $1.2 billion.
It's an expensive business trying to stay ahead of the game and ensure enough capacity to underpin the demand for artificial intelligence services.
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