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International Business Times
International Business Times
Technology

Companies Are Spending Billions To Build Data Centers. The Timeline For Them To Pay Off is Fuzzy.

Developing large-scale computing facilities requires substantial upfront capital, while customer revenue typically arrives as capacity becomes available for use. (Credit: Getty Images)

CoreWeave and Applied Digital are spending billions of dollars to expand AI computing infrastructure, but their latest financial results show how far cash generation still lags behind the investments required to build that capacity.

Together, the companies reported approximately $8.5 billion in property and equipment purchases during their most recent disclosed quarters. Their combined operating cash flow amounted to about $743 million over those periods, covering less than 9% of that spending.

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