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

What happened: CoreWeave said in its third-quarter earnings that it is asking customers to pay up front, borrowing against specific contracts, and pursuing short-term deals that could lead to higher prices. Key numbers: Revenue $3.66 billion, up 168% year over year. Net loss $709 million. Why it matters: The CEO said CoreWeave will not use the unsecured debt market at current yields. Upfront payments could ease borrowing needs but lock in prices that may look less attractive if compute demand keeps surging, and lenders favor longer-term contracts over short-term deals.

CoreWeave said in its third-quarter earnings that it is asking customers to pay up front, borrowing against specific contracts, and pursuing short-term deals that could lead to higher prices.

The CEO said CoreWeave will not use the unsecured debt market at current yields. Upfront payments could ease borrowing needs but lock in prices that may look less attractive if compute demand keeps surging, and lenders favor longer-term contracts over short-term deals.