core weave Shares fell 13% on Tuesday after CEO Mike Intrater cited delays at a third-party data center developer reaching full-year guidance in its latest earnings report.
“Frankly, everything went according to plan this quarter except for some unusual data center delays,” Intrater told CNBC’s “Squawk on the Street” on Tuesday.
He also clarified that “single data center provider” is more accurate.
“Some might think this is one complex, but when you dig into the numbers, we’re talking about multiple locations,” said CNBC’s Jim Cramer. “And, coincidentally, all the locations are connected to a costume called.” core scientific what you were trying to buy. ”
Kramer pointed to delays at complexes in Texas, Oklahoma and North Carolina.
Intrater said the two companies have long collaborated on infrastructure and will continue working to bring it online. He did not directly confirm that Core Scientific was a third-party provider.
CoreWeave attempted to acquire Core Scientific for $9 billion earlier this year. Core Scientific shareholders voted against the proposed transaction. Core Scientific shares fell 7% on Tuesday.
During Coreweave’s quarterly earnings call on Monday, JPMorgan Securities analyst Mark Murphy asked if the delay was related to Core Scientific, but Intrater did not name the company. At another point in the call, the CEO indicated that only one data center would be affected, rather than multiple sites.
“We have an issue in one data center that is impacting us, but we have 41 data centers in our portfolio,” Intrater said.
CoreWeave Chief Financial Officer Nitin Agrawal said at another point in the conference call that the delay was due to “a single provider, our data center provider partner.”
When asked for comment on the number of sites affected, CoreWeave did not provide a number, instead pointing to Intrator’s statements on the earnings call and in the “Squawk on the Street” interview.
Coreweave, which provides infrastructure to artificial intelligence companies, reported third-quarter results on Monday showing sales of $1.36 billion for the period, up 134% from $583.9 million a year earlier. However, Coreweave now expects 2025 sales to be between $5.05 billion and $5.15 billion, lower than analysts’ average estimate of $5.29 billion.
Intrater told CNBC on Tuesday that CoreWeave has a team of employees working with contractors and Core Scientific at these sites “every day” to get operations back on track.
“Delays at the facility became apparent in the third quarter,” Intrater said. “CoreWeave responded by putting its boots on the ground and ensuring everything was done to move these facilities as quickly as possible.”
Intrater told analysts on Monday that the delay will not impact its backlog and will not result in full value from the contract.
Core Scientific did not immediately respond to a request for comment.
As big tech companies and AI startups compete to build out computing infrastructure, CoreWeave continues its onslaught of deals.
In September, the company announced it had agreed to provide Meta with $14.2 billion of AI cloud infrastructure, just days after expanding its contract with OpenAI to $22.4 billion.
