Mixing Stellar Growth With Stinging Losses CoreWeave (NASDAQ: CRWV) is a leading AI cloud computing provider that just released its second-quarter earnings and delivered a bittersweet story. The data center operator obliterated revenue expectations,

CoreWeave shares sank 10% in premarket trading on Wednesday after the Nvidia-backed company posted a bigger-than-expected loss, raising doubts about its ability to keep costs under check amid robust AI demand.

CoreWeave Inc.’s shares tumbled after the cloud-computing provider reported a wider quarterly loss and gave a disappointing earnings outlook, raising concerns about its rapid AI data center expansion pressuring profit margins.

CoreWeave stock could be hit as it relies on more debt and a deal for Core Scientific to expand its data center portfolio.

CoreWeave’s stock fell 20% after the AI data center provider reported a larger-than-expected loss, according to CNBC. CoreWeave reported a second-quarter adjusted loss of 27 cents per share, exceeding the 21-cent loss expected by analysts polled by LSEG.