CoreWeave Shares Tumble After Loss Widens on AI Buildout Costs

CoreWeave Inc.’s shares tumbled after the cloud-computing provider reported a wider quarterly loss and gave a disappointing earnings outlook, raising concerns about its rapid AI data center expansion pressuring profit margins.

Third-quarter operating income will be $160 million to $190 million, the company said Tuesday, underwhelming investors looking to justify a near-quadrupling of its share price since its March debut. Costs are surging, and CoreWeave posted a loss of $131 million for the June quarter — more than 20 times bigger than the loss a year earlier.