CRWV
Debt isn’t cheap, apparently
CoreWeave’s interest expense kept climbing all year and landed at a hefty $640 million in the second quarter. That’s 2.4 times what it was a year ago, which is basically the financial version of your monthly gym membership mysteriously turning into a car payment.
Why investors should care
For a company selling the dream of AI infrastructure growth, rising interest costs are the kind of unglamorous bill that can spoil the party. The more cash that goes toward paying lenders, the less there is for scaling the business, absorbing losses, or proving that the growth story can eventually stand on its own two legs.
The not-so-fun math
- Interest expense rose every quarter over the past year
- The second quarter number: $640 million
- That’s 2.4x higher than a year earlier
If you’ve been treating CoreWeave like a pure AI rocket ship, this is the reminder that rockets still need fuel — and sometimes the fuel comes with a pretty nasty financing tab.
Big picture: the AI infrastructure trade may be real, but leverage can turn a growth story into a debt story very quickly.