CoreWeave reported its first quarterly profit as demand for AI-powered cloud infrastructure surges, while Applied Digital continues to operate at a significant cash loss while scaling its data center portfolio. The divergence underscores contrasting strategies in the fast-evolving AI infrastructure market.
- CoreWeave achieved $18.2 million net profit in Q3 2025, its first ever profitable quarter.
- CoreWeave revenue rose 92% YoY to $214 million, driven by AI cloud demand.
- Applied Digital reported a $124 million net loss in Q3, with $230 million in capital expenditures.
- Applied Digital’s annual cash burn exceeds $300 million despite 68% revenue growth.
- CoreWeave’s stock (CORE) surged 14% post-earnings; Applied Digital (APD) fell 7%.
- Market is evaluating contrasting strategies: profitability vs. infrastructure scale-up.
CoreWeave, a leading provider of GPU-accelerated cloud computing, achieved profitability for the first time in its history during the third quarter of 2025, reporting a net income of $18.2 million, up from a $27.5 million loss in the same period the prior year. Revenue grew 92% year-over-year to $214 million, driven by sustained demand from AI developers and enterprises deploying large language models. In contrast, Applied Digital, a data center developer focused on AI-ready facilities, reported a net loss of $124 million during the same quarter, despite a 68% increase in revenue to $157 million. The company is investing heavily in constructing new data centers across North America and Europe, with capital expenditures reaching $230 million in Q3 alone. Its cash burn rate has exceeded $300 million annually, reflecting a strategy prioritizing rapid infrastructure deployment over near-term profitability. The financial divergence highlights two distinct approaches in the AI infrastructure sector. CoreWeave’s ability to monetize its existing compute capacity efficiently suggests strong unit economics, while Applied Digital’s aggressive expansion reflects a bet on future demand and long-term market positioning, albeit at a steep current cost. Investors are closely watching how these strategies play out amid rising competition and shifting capital markets. CoreWeave’s stock (CORE) saw a 14% jump in after-hours trading, while Applied Digital (APD) shares dipped 7% despite the revenue growth, signaling market skepticism over its burn rate and path to profitability.