May 7 (Reuters) – CoreWeave Inc beat analysts’ estimates for quarterly revenue on Thursday, as the specialized cloud provider tapped into strong demand for its high-performance computing services used to train and deploy artificial intelligence models.
Shares of the company rose 3% in extended trading.
Demand for services from the so-called neoclouds, such as CoreWeave and peer Nebius, has skyrocketed as companies race to secure the computing capacity required to develop and run AI models.
CoreWeave’s core advantage lies in its specialized infrastructure and a close relationship with AI chip bellwether Nvidia, which grants it early and large-scale access to the most sought-after AI hardware.The company reported total revenue of $2.08 billion for the first quarter, compared with analysts’ average estimate of $1.97 billion, according to data compiled by LSEG.
(Reporting by Juby Babu in Mexico City; Editing by Sriraj Kalluvila)
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