CoreWeave turns to customer prepayments, shorter contracts to fund AI growth

CoreWeave's Q3 earnings show it is increasingly asking customers to pay up front, borrowing against specific contracts, and pursuing short-term deals that can command higher prices, as it reported $3.66 billion in revenue (up 168% year over year) alongside a $709 million net loss and $846 million in quarterly interest expense. The company expects about $9 billion in customer prepayments and deposits over the next three months and plans to rely on contract-backed loans rather than unsecured debt, while raising prices roughly 25% in July and another 10% later in the quarter. The strategy could boost profits but carries greater risk around contract renewals and pricing, and bond investors have shown concern, with yields on some of the company's bonds hitting above 15% last month.