Over the past 12 months, CoreWeave has delivered a remarkable 119% gain in revenue driven by surging demand for GPU-powered cloud services. The company reported that total bookings more than doubled year-over-year, with a Q3 backlog reaching $55 billion—twice the prior year’s level. Management attributes this surge to increased enterprise adoption of large-language-model training and inference workloads, positioning CoreWeave as a leading specialist in high-performance AI infrastructure.

Despite strong top-line momentum, CoreWeave’s cash burn remains elevated, with net losses widening to $863 million in 2024 and operating losses up to $748 million over the first three quarters of 2025. Heavy capital expenditures on data-center build-out drove total capex to over $5 billion last year, financed through a combination of debt facilities and equity raises. As of the latest filing, the company carries over $10 billion of long-term obligations, prompting questions about liquidity if AI market growth decelerates.

CoreWeave’s strategic deal with Nvidia includes a $6.3 billion commitment for unsold capacity through 2032 and stems from Nvidia’s $300 million equity investment, representing roughly a 7% ownership stake. Critics warn that this circular arrangement could inflate reported revenues without fully reflecting end-customer demand. Supporters counter that the pact secures hardware supply and stabilizes utilization rates. The interplay has become central to discussions about CoreWeave’s $45 billion valuation and whether it accurately captures sustainable profit potential.

Wall Street firms are divided: one major bank initiated coverage with a Neutral rating and highlighted CoreWeave’s architectural edge and deep customer relationships, while a well-known short-seller warns of faster GPU depreciation and a potential capacity glut as newer chip families emerge. At current valuation levels—sub-8 times forward sales—some investors view the stock as undervalued, provided the company can convert its backlog and improve margins. Key execution milestones include achieving 850 MW of active power capacity by year-end and demonstrating lower cash burn in the second half of 2026.