CoreWeave still has infrastructure to build for its reported backlog of 132.5 billion dollars.

A backlog is work or orders that a company has agreed to do but has not completed yet.

That backlog is a large amount of future business, but it is not the same as cash already collected, or profit already earned.

Here, backlog means promised future business, not money the company has already received or earned.

CoreWeave says it does not plan to use unsecured debt at current yields.

Unsecured debt is money borrowed without specific assets or contracts promised as security.

Unsecured debt is borrowing that is not tied to particular assets or contracts.

It means borrowing that is not backed by particular assets or contracts.

Instead, the company plans to borrow against specific customer contracts and draw funds as needed for much of the infrastructure it still has to build.

To borrow against something is to use it as security for a loan.

And the interest expense matters because borrowed money has a cost even while a company is building capacity and waiting for the investment to pay off.

Here, an investment pays off when it brings enough benefit or profit to make it worthwhile.

But a prepayment is not simply free money.

A prepayment is money paid before a service is provided.

The prepayment can help pay for expansion now, but it may limit some of the company’s choices over the length of the contract.

Here, the prepayment is money a customer pays in advance for service.

Instead, the company plans to borrow against specific customer contracts and draw funds as needed for much of the infrastructure it still has to build.

To draw funds is to take money from a loan when it is needed.

Borrowing in installments can let the company draw funds as spending needs arise, rather than taking the entire amount at the start.

To draw funds is to take some of the available loan money when spending requires it.

Leo, why could a shorter deal command a higher price?

Here, this means that a shorter deal could be sold for more money.

The reporting says lenders give more weight to predictable cash flow and consistency when judging whether a borrower can repay.

Cash flow is money coming into and going out of a business.

Lenders give more weight to longer contracts because they value predictable cash flow and consistency when judging whether a borrower can repay.

Here, predictable cash flow means money a business can expect to receive regularly.

But each choice carries a trade-off: commitments to serve customers, uncertainty when short contracts end, and debt that must be repaid before new infrastructure has necessarily earned its cost.

A trade-off is a choice with both benefits and costs.