CoreWeave shares sank 10% in premarket trading on Wednesday after the Nvidia-backed company posted a bigger-than-expected loss, raising doubts about its ability to keep costs under check amid robust AI demand.

CoreWeave’s shares dropped as much as 20 per cent on Wednesday, after the artificial intelligence data centre operator reported bigger second-quarter losses than Wall Street expected.

The company posted a second-quarter loss of $0.60 per share, while analysts surveyed by Visible Alpha had anticipated a loss of $0.45 per share. Revenue soared 207% year-over-year to $1.21 billion, beating estimates.