AI cloud provider CoreWeave beat Wall Street estimates for third-quarter revenue Monday, benefiting from surging demand for its computing infrastructure that powers artificial intelligence workloads.

Shares of the company rose about 3% in extended trading. The stock has been volatile since its debut earlier this year, as investors weigh massive contract wins against heavy spending and strategic setbacks.

CoreWeave has cemented its position as a key infrastructure partner for the biggest names in technology, landing a string of multibillion-dollar deals that underscore the voracious appetite for AI-powering graphics processing units.

The company's focus on providing high-performance cloud infrastructure specifically for AI has allowed it to capture demand from clients such as Meta Platforms and OpenAI, who are racing to develop and deploy generative AI models.

Its aggressive expansion plans, however, hit a snag in late October when crypto miner Core Scientific terminated a $9 billion all-stock merger agreement.

CoreWeave reported revenue of $1.36 billion for the third quarter, compared with analysts' average estimate of $1.29 billion, according to data compiled by LSEG.