CoreWeave presents itself as an AI hyperscale cloud provider that generates nearly all revenue from long-term contracts for AI infrastructure, recognizing revenue only after specialized data centers are built and operational, making its business highly dependent on timely data center delivery. After announcing a major OpenAI deal shortly before its March 2025 IPO, CoreWeave went public at $40 per share, its stock later surging amid repeated assurances of “robust” demand and raised revenue guidance despite underlying infrastructure and supplier constraints.
The complaint alleges that throughout the class period, CoreWeave and its executives materially misled investors by overstating their ability to meet demand and understating the risks of reliance on a single third-party data center supplier, risks that were reasonably likely to harm revenue. These issues came to light through a failed acquisition of Core Scientific, lowered revenue guidance tied to data center delays, subsequent executive admissions, and a Wall Street Journal exposé, triggering sharp stock price declines between October and December 2025.
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