"A vast data center in Plano, Texas, is a symbol of the enormous AI infrastructure boom that has boosted stock markets and driven U.S. economic growth over the past year. The data center occupies more than 450,000 square feet and cost $1.6 billion to construct and equip. It supplies 30 megawatts of computing power to train and run AI models."
"The company is built, by its own admission, on a mountain of debt-obligations it has piled up as it races to build out a network of server farms for its customers. And that mountain looms far larger than the piles of cash that CoreWeave has brought in the door so far. When the company announces earnings on Monday, bulls and bears alike will be watching to see how its revenue is growing, and whether it has been able to pare its losses."
"CoreWeave has $7.6 billion in current liabilities-bills that fall due within 12 months-on its balance sheet, and $11 billion in debt overall, according to its most recent quarterly earnings report, filed in August. Coming from a tech giant like Google or Microsoft with tens of billions in free cash flow, such numbers wouldn't raise an eyebrow. But CoreWeave's revenues were only $1.9 billion in 2024."
CoreWeave operates dozens of global data centers that supply computing capacity to train and run AI models for major technology companies. A Plano facility spans more than 450,000 square feet, cost $1.6 billion to build and equip, and provides 30 megawatts of compute power. CoreWeave frequently operates facilities it does not own and has accumulated large liabilities, with $7.6 billion in current liabilities and $11 billion in total debt versus $1.9 billion in revenue in 2024. The heavy leverage creates potential financial vulnerability amid the expensive AI infrastructure buildout.
Read at Fortune
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