On September 17, CoreWeave said it had continued signing customers at higher prices after June 30. According to the company, third-quarter contracts run only three to six months, yet they imply about $40 million in annualized revenue per megawatt of power. In the AI infrastructure market, that points to notable pricing power even though the company is still loss-making.
CoreWeave says the short duration of those contracts also allows it to reset pricing frequently if demand remains tight. The volume picture supports that argument: revenue backlog stood at about $104 billion as of June 30. That figure excludes more than $25 billion in fresh commitments added early in the third quarter, meaning spending that customers have already pledged.
Contracted power has also moved higher, reaching about 4.2 gigawatts by the August 11 earnings call from roughly 3.7 gigawatts on June 30. At the same time, the customer base is widening, with Caterpillar and Bentley Systems joining AI labs among clients. Second-quarter revenue came to $2,575 million, more than doubling from $1,212 million a year earlier.
Higher pricing, however, has yet to flow through to the bottom line. Management described the second quarter as an inflection point for operating leverage, but operating income deteriorated to a $49 million loss from a $19 million profit a year earlier. Adjusted operating margin fell to 5% from 16%, indicating costs are still rising faster than revenue.
Debt servicing is adding further pressure. Net interest expense reached $640 million, more than double the prior-year level, helping widen the net loss to $626 million from $290 million. The backlog, meanwhile, is a promise rather than cash and only turns into revenue if CoreWeave delivers the required capacity. As of June 30, active power stood at 1.5 gigawatts versus 3.7 gigawatts that had been contracted.
Building out the remaining capacity requires more capital, and the company raised more than $10 billion in the second quarter through convertible bonds and unsecured debt. The three-to-six-month contract structure also creates another test: the roughly $40 million annualized rate per megawatt has to hold at every renewal.
Investor sentiment remains split. Hedge fund ownership of CoreWeave rose to 71 funds from 63 in the previous quarter, pointing to stronger interest from professional investors. At the same time, 17.84% of the float is sold short, showing a high level of skepticism as well. That can cut both ways: if positive news continues, a heavily shorted stock can rally sharply, although part of the short interest may reflect hedging rather than outright bearishness.
The central question, the publication argues, is whether CoreWeave can grow revenue fast enough through higher pricing to offset both its interest burden and the cost of expansion. Bulls are counting on each short-term renewal to hold pricing while new capacity comes online. Bears are watching for any slippage in delivery or softer pricing, either of which would weigh on a company that is already in the red.
