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

CoreWeave is shifting how it finances AI infrastructure after reporting third-quarter results on Tuesday. The neocloud is seeking customer prepayments, contract-backed loans, and shorter deals that can carry higher prices. Revenue rose sharply, while a large net loss and interest expense continued.

• CEO Michael Intrator said CoreWeave will not use unsecured debt to fund the business at current yields.
• Prices rose about 25% in July and another 10% later in the quarter, and they are still climbing.
• In August it closed a $2.6 billion installment loan, DDTL 5.5, aimed at shorter-term customer contracts.

• $3.66 billion — third-quarter revenue, up 168% from the year prior
• $709 million — quarterly net loss
• $846 million — quarterly interest expense
• $132.5 billion — backlog tied to infrastructure still to build
• about $9 billion — expected prepayments and deposits over three months, including more than $3 billion for built capacity
• more than $40 million — annual per-megawatt price for short-term capacity

Nebius and IREN have used large Microsoft prepayments to fund computing capacity.

The bets hold only if demand and pricing power last, and some bond yields topped 15% last month.