CoreWeave carries approximately $15 billion of total debt, including lease obligations, which is nearly four times its trailing 12-month revenue. In the most recent quarter, the company paid $311 million in interest expense—more than one-fifth of its total revenue and roughly six times its gross profit—marking a 200% year-over-year increase. This heavy leverage raises concerns over refinancing risk and cash flow sustainability, particularly if macroeconomic conditions tighten or credit markets become less receptive to high-yield issuances.

Almost all of CoreWeave’s revenue is derived from a handful of hyperscale customers, including Microsoft and other large cloud providers. Those same customers are investing heavily in their own AI infrastructure, creating the potential for deteriorating demand for third-party GPU rental services. If hyperscalers choose to internalize more processing work, CoreWeave could face rapid revenue erosion and underutilized capacity, undermining its high-growth narrative.

CoreWeave plans capital expenditures of up to $30 billion in 2026 to expand its GPU fleet and maintain industry-leading compute density. However, the rapid cadence of new GPU releases by Nvidia and competitors may shorten the useful life of current hardware. If energy-efficiency improvements and performance gains accelerate, customers could shift away from older systems more quickly than forecast, pressuring utilization rates and return on invested capital.

Investors have responded favorably to CoreWeave’s early adoption of Nvidia’s Rubin AI platform, which promises more cost-effective model training and inference. Nvidia’s 5% equity stake in CoreWeave underscores the strategic alignment, and the company was among the first cloud providers to deploy Rubin in full production. This partnership could reinforce CoreWeave’s competitive moat and support higher utilization rates as enterprise AI workloads become more sophisticated.