CoreWeave CEO responds to data center delays as stock plunges. Core Scientific shares fall

CoreWeave shares dropped 13% after the company revised its 2025 revenue guidance downward to $5.05-$5.15 billion, below analyst estimates, attributing the change to delays at a third-party data center provider, which CNBC identified as Core Scientific. Despite reporting strong Q3 revenue of $1.36 billion, a 134% year-over-year increase, and securing significant AI infrastructure contracts with Meta and OpenAI, the operational setback prompted investor concern, also causing Core Scientific shares to fall 7%. CoreWeave's CEO stated the delays would not affect its backlog or contract value, with internal teams deployed to expedite resolution at the affected facilities.

Analysis

CoreWeave shares declined 13% following a downward revision of its 2025 revenue guidance to $5.05-$5.15 billion, falling short of the $5.29 billion average analyst estimate. This adjustment stems from delays at a third-party data center provider, despite the company reporting robust Q3 revenue of $1.36 billion, a 134% year-over-year increase from $583.9 million. The market reaction indicates significant concern over future operational execution.

The third-party provider is strongly implied to be Core Scientific, whose shares also fell 7% on Tuesday, following CoreWeave's failed $9 billion acquisition attempt earlier this year. CEO Mike Intrator's conflicting statements regarding the number of affected data centers (one vs. multiple sites across Texas, Oklahoma, and North Carolina) and his refusal to name the provider introduce uncertainty regarding the full scope of the operational issue.

Despite these operational headwinds, CoreWeave continues to secure substantial AI infrastructure contracts, including $14.2 billion with Meta and $22.4 billion with OpenAI. While Intrator asserts these delays will not impact backlog or contract value, the necessity for CoreWeave to deploy its own teams to expedite facility readiness underscores a critical execution risk in scaling its high-growth AI infrastructure business.

Key Decisions for Investors

• Monitor CoreWeave's progress in resolving the data center delays and its impact on future guidance, as operational execution remains a key risk despite strong demand.
• Evaluate the long-term implications of CoreWeave's infrastructure strategy and its reliance on third-party providers, especially given the unresolved issues with Core Scientific.
• Assess the sustainability of CoreWeave's growth trajectory, balancing its significant AI contract wins against potential infrastructure bottlenecks and execution challenges.