CoreWeave Bulls Face Off Against Short Sellers as Shares Spike

CoreWeave Inc. shares have been on a tear as investors snap up the stock despite widespread concerns about elevated debt levels, the rate of cash-burn and the long-term demand for the cloud-computing services it provides.

The shares have more than doubled in price in May after CoreWeave reported a deal with OpenAI worth as much as $4 billion to rent out computing power to process artificial intelligence demands. Meanwhile, CoreWeave’s first earnings report this month showed solid revenue growth and customers like Microsoft Corp. have recently pledged to keep spending heavily on AI computing.