CoreWeave is asking customers to fund more of its expansion in advance while avoiding unsecured debt at current interest rates. The AI cloud provider expects roughly $9 billion in prepayments and deposits over three months, including more than $3 billion tied to already-built capacity.
The company reported $3.66 billion in quarterly revenue, up 168% year over year, alongside a $709 million net loss and $846 million in interest expense. Its remaining contracted backlog is $132.5 billion. CoreWeave plans to borrow against individual customer agreements and draw funds as infrastructure is built, rather than depend on general corporate debt.
It is also allocating more capacity to shorter contracts. Management said those opportunities can sell above $40 million per megawatt annually, compared with $20 million to $25 million for new four- and five-year deals. Prices rose about 25% in July and another 10% later in the quarter.
Short terms improve pricing flexibility but are less valuable to lenders because renewals are uncertain. Upfront payments likewise lock in service obligations that could look cheap if compute prices keep rising. Bond yields above 15% on some CoreWeave debt show that financing concerns remain. The strategy reduces immediate unsecured borrowing, but its success still depends on sustained demand, customer solvency and the ability to deliver contracted capacity.