CoreWeave faces rising losses and debt despite strong AI revenue and $100B backlog.

CoreWeave is experiencing increasing losses and operating inefficiencies even though its AI-driven revenue is growing robustly and it holds a $100 billion backlog. The company's adjusted operating margins have dropped significantly, while capital expenditures and net debt have surged, with no clear path to profitability soon. Recent financing rounds, including $1 billion in senior notes and $3.5 billion in convertible notes, have raised interest expenses and leverage, prompting caution among investors compared to profitable tech peers. Sequential improvements are needed but not yet visible for CoreWeave to compete effectively in the AI market.