CoreWeave shares drop as growing losses eclipse AI demand surge


FILE PHOTO: A screen displays the company logo for CoreWeave, Inc., Nvidia-backed cloud services provider, during the company's IPO at the Nasdaq Market, in New York City, U.S., March 28, 2025. REUTERS/Brendan McDermid/File Photo

(Reuters) -CoreWeave shares fell 11% on Wednesday after the Nvidia-backed company posted a bigger-than-expected loss, raising doubts about its ability to keep costs under check amid robust AI demand.

The AI infrastructure firm's operating expenses jumped nearly fourfold to $1.19 billion in the second quarter, underscoring the tension between its rapid revenue growth and mounting financial strain.

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