CoreWeave’s third-quarter revenue rose 168% year over year, and it raised its full-year revenue outlook to more than $13 billion. Its shares climbed 10% premarket, lifting AI infrastructure stocks including IREN and Cipher Digital, while Bitcoin barely moved around $74,000. (Previously: JPMorgan: CoreWeave’s sharp declines in stocks and bonds have limited market impact, with most banks having little exposure) (Background: $67 billion in debt issued in one week: Goldman Sachs warns that AI debt pressures are building) The third-quarter earnings report from cloud computing provider CoreWeave (CRWV) gave a boost to the AI trade, which had been weakening for days. The company reported a 168% year-over-year increase in quarterly revenue and raised its full-year revenue forecast to $13 billion–$13.3 billion. However, its net loss also widened to $709 million, or $1.27 per share, mainly due to higher interest costs. After the earnings were released, CoreWeave shares rose 10% in premarket trading on Wednesday. CoreWeave’s earnings sparked a rally in AI infrastructure stocks ahead of the market open on November 11. (Illustration by BlockTempo) The positive sentiment spread across the AI infrastructure supply chain. IREN rose 6% premarket, Galaxy Digital gained 5%, and Cipher Digital advanced 7%, while Nasdaq 100 futures also climbed more than 1.5%. Compared with last week, when concerns after the U.S. midterm elections about permitting bottlenecks at Texas data centers sent stocks of mining companies transitioning to AI tumbling, today’s rally in these stocks looks more like a rebound after a steep selloff than a renewed uptrend. The crypto market did not follow suit. Bitcoin was almost unchanged over 24 hours, hovering around $74,000, while gold held near $4,000 an ounce. For now, the latest rally, driven by AI capital spending, remains confined to stocks and the computing-power rental market, with no spillover into buying of crypto assets. Macroeconomic conditions are hardly loose, either. The U.S. Consumer Price Index (CPI) rose 0.4% month over month in October, while core CPI increased 0.3%; both were above market expectations. The inflation data pushed the U.S. Dollar Index above 102. Traders are pricing in an approximately 86% chance that the Federal Reserve (Fed) will raise rates by 25 basis points on December 9, and about a 14% chance of a 50-basis-point hike. If interest rates remain elevated, the interest costs of an AI infrastructure model that borrows to buy GPUs will continue to eat into profits. Another development involves Anthropic. The Financial Times, citing people familiar with the matter, reported that Anthropic’s underwriting team is pushing its IPO valuation target above $1.5 trillion, up from around $1.4 trillion the previous day. Strategic partners including Google, Nvidia, and Microsoft will also invest $26 billion through private placements priced at the IPO price. BlockTempo previously reported that the company plans to issue 825 million shares, with a price cap of $78, and list on Nasdaq under the ticker ANT. Market impact: Investors only care whether demand for computing power is easing The most intriguing aspect of CoreWeave’s earnings is the market’s response to “soaring revenue and widening losses.” Higher interest costs drove up its net loss, which should normally be negative news. Yet the shares rose 10% premarket, showing that investors are focused solely on whether demand for AI computing power is cooling, rather than on the state of the company’s finances. This pricing logic depends on demand continuing to exceed expectations. If customers start pulling back on orders, the same earnings report could quickly be reinterpreted as “borrowing money to buy growth.” Interest rates and debt are the second variables. CoreWeave’s widening net loss is itself a snapshot of the AI infrastructure sector piling on debt to build computing capacity; with bets on rate hikes increasing, this approach will only get more expensive. Bitcoin’s decoupling from AI stocks is another signal: if enthusiasm in AI capital markets does not translate into crypto buying, the valuation story for mining companies transitioning to AI will have to rely more heavily on their own cash flow, rather than a broader recovery in risk appetite. Two upcoming figures will determine whether the AI trade continues or undergoes another correction: the Fed’s decision on December 9, and whether Anthropic’s actual IPO pricing can exceed a $1.5 trillion valuation on its first day of trading. Related reports: Anthropic IPO targets a valuation of around $1 trillion! Ticker ANT expected to begin trading next week; Texas turns: Bitcoin miners’ AI transition dreams may be thwarted, with Hut 8 plunging 23% and Cipher Digital down nearly 20%; IREN, a Bitcoin miner, earns more from AI than mining for the first time! But it reports a net loss of $684 million, and shares plunge more than 12%. “CoreWeave revenue surges 168%, sending shares soaring! AI infrastructure stocks rally as Bitcoin trades sideways.” This article was originally published on BlockTempo (BlockTempo — the most influential blockchain news outlet).