NVIDIA-backed CoreWeave to Invest $23 billion on AI infrastructure in 2025
NVIDIA-backed CoreWeave, a cloud computing company, plans to invest $20 to $23 billion in 2025 on AI infrastructure and data center capacity to meet rising customer demands, including those from Microsoft. In its first quarter of 2025 results, the company highlighted continued rapid scaling of its purpose-built AI Infrastructure, including adding new compute capacity, totalling approximately 420 MW of active power and approximately 1.6 GW of contracted power at quarter end. According to the reports, the company’s projected capital expenditure of between $3 billion and $3.5 billion for the second quarter was way above its revenue expectation of $1.06 billion to $1.1 billion. Revenue increased by 420% year-over-year, fueled by strong demand for the CoreWeave Cloud Platform. “Long-term, committed contracts provide strong revenue visibility, attractive unit economics, and enable a success-based approach to capital investments matched to customer contracts,” the company said in its first quarter results. Today, we announced 1Q 2025 earnings, our first quarterly results after going public. We’ve had a strong start to 2025 with major customer wins, industry-leading performance, and accelerating demand for our platform. Read our press release: https://t.co/zuk7TwfN31 #AICloud… pic.twitter.com/dzwHRBZAiW— CoreWeave (@CoreWeave) May 14, 2025 “Demand for our platform is robust and accelerating as AI leaders seek the highly performant AI cloud infrastructure required for the most advanced applications. We are scaling as fast as possible to capture that demand,” said Michael Intrator, CoreWeave’s co-founder and CEO. The company reported that its revenue backlog stood at $25.9 billion as of March 31, with the five-year agreement with OpenAI contributing $11.2 billion. In March, CoreWeave announced a partnership with OpenAI to provide AI infrastructure. The partnership aims to increase OpenAI’s computing capacity for training and delivering its latest models to its hundreds of millions of users worldwide. The cloud computing company announced that it raised $1.4 billion in net proceeds through its initial public offering (IPO). This amount contributes to a total of $17.2 billion in debt and equity raised to support the company’s strategy for advancing the next generation of cloud computing and its future applications in AI. The company has also ramped up investments in data centre and server infrastructure to meet customer demand. Capital expenditures amounted to $1.9 billion in the first quarter. This quarter-over-quarter increase was driven by the timing of new data centre capacity coming online and the introduction of new generations of GPUs. According to Reuters, CoreWeave is also looking to diversify its supply chain amidst the US-China trade war tensions, aiming to minimise the tariffs’ impact. “(Our clients) are looking for really significant investment from us, and we’re trying to make sure that we’re doing it in a way that doesn’t in any way impact our ability to secure the margins that we need in order to run our business,” Intrator told the news agency.
The company’s financial results indicate a strong commitment to developing AI infrastructure, despite the ongoing trade tensions between the US and China.
The company's financial results indicate a strong commitment to developing AI infrastructure, despite the ongoing trade tensions between the US and China.
["AI Infrastructure", "NVIDIA"]
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["AI", "OpenAI", "Aim", "cloud computing", "R", "Go", "API", "IPO", "programming_languages:R", "programming_languages:Go"]
Smruthi brings over two years of experience in reporting on the global energy industry. They hold a Master's Degree from the University of Leeds in International Journalism and a Bachelor's Degree from Christ University in Media Studies, Economics and Political Science.