US-based AI cloud hosting company CoreWeave is planning to invest between $20bn and $23bn this year in AI infrastructure and data centre capacity.

This move aims to cater to the increasing demand from clients, including Microsoft, reported Reuters.

CoreWeave CEO Mike Intrator was cited by the news agency as saying that the company’s distinctive approach to structuring its debt and capital spending is expected to take time for the market to understand.

Intrator added: “You pay back your infrastructure fully loaded and you have significant profit.”

CoreWeave’s projected capital expenditure for Q2 2025 ranges between $3bn and $3.5bn, significantly higher than its revenue expectations of $1.06bn to $1.1bn.

Intrator said that CoreWeave is actively working to diversify its supply chains to minimise the impact of tariffs, amid US-China trade tensions.

“(Our clients) are looking for really significant investment from us, and we’re trying to make sure that we’re doing it in a way that doesn’t in any way impact our ability to secure the margins that we need in order to run our business,” Intrator added.

The company reported 420% in increase in revenue in the quarter ending 31 March 2025, rising from $188.7m a year earlier period.

Net loss widened to $314.6m from $129.2m a year ago, driven in part by $177m in stock-based compensation tied to its initial public offering (IPO).

As of 31 March 2025, CoreWeave reported a revenue backlog of $25.9bn.

A significant contribution to this backlog is the five-year deal with OpenAI.

Also in March, CoreWeave signed a $11.9bn deal to provide AI infrastructure to OpenAI.

As part of the agreement, OpenAI agreed to invest $350m in CoreWeave through the purchase of CoreWeave stock.