****

CoreWeave, a prominent player in the cloud computing sector, has seen its stock soar nearly 70% since its initial public offering (IPO) in March. By Wednesday's close, the company's stock experienced further gains following the release of its first quarterly report as a public entity.

In a striking performance, CoreWeave reported first-quarter revenue of $981.6 million, marking a staggering increase of 420% compared to the same period last year. This significant revenue growth is attributed to the rising demand for advanced AI cloud infrastructure. Despite the impressive revenue figures, the company's adjusted net loss widened to $149.6 million from $23.6 million in the corresponding quarter of the previous year.

CEO and co-founder Michael Intrator explained that the surge in demand is driven by AI leaders seeking highly efficient AI cloud infrastructure for cutting-edge applications. "We are scaling as fast as possible to capture that demand," Intrator stated, underscoring the company's proactive approach to meet market needs.

Further bolstering its expansion plans, CoreWeave is reportedly preparing to raise approximately $1.5 billion in debt financing. The move follows an initial public offering that was smaller than anticipated, as suggested by a recent Financial Times report.

CoreWeave generates revenue by offering clients access to its data centers, which are essential for developing artificial intelligence models. These data centers are outfitted with highly sought-after Nvidia chips, with Nvidia holding about a 5% stake in the company.

The announcement of the robust first-quarter results propelled CoreWeave shares over 7% in after-hours trading, which followed an approximate 7% increase during Wednesday's regular session. This performance highlights the market's positive response to CoreWeave's rapid growth and strategic direction.