CoreWeave's AI Surge Reaches $55B in Orders, Yet $12B in Capital Spending and Debt Raise Concerns Over Profitability

CoreWeave Inc. (NASDAQ: CRWV) posted impressive results for the third quarter of 2025, achieving $1.36 billion in revenue—a 134% jump from the previous year—and nearly doubling its revenue backlog to $55.6 billion, fueled by escalating demand for AI-focused cloud services.

. Despite this, shares dropped 3.68% to $103.00 on Friday, continuing a downward trend as investors expressed concerns about profit margins, rising capital investments, and whether the AI infrastructure surge can be sustained . The decline occurred even after the company revealed a major collaboration with cybersecurity giant CrowdStrike, designed to safeguard CoreWeave’s AI cloud for the “agentic era” .

The quarterly report highlighted CoreWeave’s central position in the AI computing surge, with major clients like OpenAI and Meta Platforms utilizing its GPU-centric infrastructure

. CEO Michael Intrator pointed to “disciplined execution” in both scaling infrastructure and managing client relationships, while CrowdStrike CFO George Kurtz underscored the partnership’s promise to “secure the future of AI” . Announced at CrowdStrike’s Fal.Con Europe 2025, the alliance merges CoreWeave’s high-powered cloud with CrowdStrike’s Falcon platform to tackle security issues in AI innovation .

Nonetheless, enthusiasm was dampened by financial challenges.

reported a net loss of $110.1 million, or $0.22 per share, an improvement from the $359.8 million loss in the same period last year . Adjusted EBITDA reached $838 million, accounting for 61% of revenue, but capital expenditures soared to $1.9 billion in Q3, with 2025 CapEx now projected between $12 billion and $14 billion . This significant investment, along with an anticipated $1.21 billion–$1.25 billion in interest expenses for 2025, has sparked debate about the company’s long-term profitability .

Investor confidence was further shaken when Intrator sold $5.7 million in shares at $113.97 each, raising questions about management’s outlook

. The sale coincided with a broader market downturn after the Federal Reserve signaled delays in rate reductions. Jefferies analysts described the stock as “very attractive” at 17 times its projected 2027 EBIT, but others cautioned about potential overvaluation . “CoreWeave presents a high-risk, high-reward scenario,” one analyst remarked, pointing to issues like customer concentration, significant debt, and margin pressures .

The company’s 2026 outlook added to investor skepticism. With capital expenditures expected to top $28 billion—twice the 2025 estimate—stakeholders are closely watching how quickly CoreWeave can turn its $55.6 billion backlog into actual revenue

. Although the company continues to stress its role as an “essential cloud for AI,” the stock’s 20% drop since October signals mounting concerns about a potential AI infrastructure bubble .

Even with these short-term challenges, CoreWeave remains a major force in the AI technology race. Its strategic partnerships—including the CrowdStrike deal and a 40,000-GPU rollout with Nvidia-backed Poolside—position it to capitalize on the agentic AI era

. Still, as investors demand more clarity on profitability and operational execution, CoreWeave’s ability to balance rapid growth with healthy margins will determine if its $50.8 billion valuation is justified or overblown .