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.

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.

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.