CoreWeave and Nebius, two companies that build and operate the data centers powering artificial intelligence, both reported strong growth in their latest results even as each posted financial losses. The numbers point to sustained demand for the computing capacity that AI models require, a trend that could reinforce NVIDIA's position as the leading supplier of the chips inside those systems.
Growth in the AI build-out
Both companies saw their core businesses expand over the reporting period. CoreWeave, which rents out GPU clusters to AI developers, and Nebius, which runs cloud infrastructure for AI workloads, each described rising customer demand and growing revenue. Neither has turned a profit, but the losses did not stop either from scaling up operations.
The pattern is familiar in the AI infrastructure space: heavy spending on hardware and facilities now, with the expectation that future revenue will justify the outlay. For CoreWeave and Nebius, the growth signals that the market for AI compute is still expanding, not contracting.
The cost of keeping up
Losses at both companies stem largely from the expense of building and maintaining data centers. Buying servers, securing power, and hiring engineers all cost money before a single customer signs on. The financial statements show that both firms are willing to absorb those costs to capture a slice of the AI boom.
That spending is not unusual for companies in this sector, but it does raise questions about how long investors will tolerate red ink. The growth in revenue and usage suggests the bet is paying off so far, but the bottom line remains negative.
NVIDIA makes the GPUs that power most AI training and inference workloads. When companies like CoreWeave and Nebius expand their infrastructure, they typically buy more of those chips. The growth reported by both firms is therefore a positive signal for NVIDIA's market position, even if the companies themselves are not yet profitable.
The demand for AI infrastructure is not limited to a handful of players. CoreWeave and Nebius are part of a broader wave of investment in data centers, cloud services, and specialized hardware. As long as that wave continues, NVIDIA stands to benefit from the orders that come with it.
Investors will be watching the next round of earnings from CoreWeave and Nebius to see whether the growth can outpace the losses, and how much of their spending flows to NVIDIA. The companies have not given specific guidance for the coming quarters, but the current results suggest the AI infrastructure build-out is far from over.
