CoreWeave Inc.’s shares tumbled after the cloud-computing provider reported a wider quarterly loss and gave a disappointing earnings outlook, raising concerns about its rapid AI data center expansion pressuring profit margins.

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 AI-focused data center operator beat revenue forecasts but reported a $291 million quarterly loss, rattling investors.