CRWV says its near-term earnings are being pressured by a roughly six-week gap between when new AI infrastructure begins depreciating and wh
CRWV says its near-term earnings are being pressured by a roughly six-week gap between when new AI infrastructure begins depreciating and when contracted customer revenue starts flowing. The company has about $30 billion of debt funding 49 operating data centers and future deployments. Depreciation and interest reached 81% of first-quarter revenue, but CEO Michael Intrator expects that burden to ease as more installed capacity begins generating revenue. CoreWeave’s financing is backed by long-term customer contracts that require clients to pay for reserved capacity whether they use it or not.
CRWV says its near-term earnings are being pressured by a roughly six-week gap between when new AI infrastructure begins depreciating and when contracted customer revenue starts flowing.
The company has about $30 billion of debt funding 49 operating data centers and future deployments.
Depreciation and interest reached 81% of first-quarter revenue, but CEO Michael Intrator expects that burden to ease as more installed capacity begins generating revenue.
CoreWeave’s financing is backed by long-term customer contracts that require clients to pay for reserved capacity whether they use it or not.