CoreWeave shares fell as much as 8.3% as investor concerns about debt-funded AI infrastructure spending grew. The company has about $50 billion in debt, and the cost of insuring it against default reached around 1,000 basis points.
CoreWeave shares and bonds fell again as investors questioned whether future AI revenue can support the sector’s heavy spending. Its shares slipped as much as 8.3%, extending a decline of more than 15% from Wednesday, while the company’s debt totals about $50 billion.
The cost of insuring CoreWeave’s debt against default climbed to around 1,000 basis points, implying a nearly 63% chance of default in five years, compared with about 30% a year ago. Its April-issued bonds due in 2031 yielded near 16%. Nvidia has agreed to buy any unsold CoreWeave capacity through April 13, 2032.
CoreWeave raised its annual capital spending forecast by $4 billion in August, to as much as $39 billion. Analysts estimate the company will post nearly $13 billion in revenue and a $2.13 billion loss this year. CEO Mike Intrator told employees that its deal backlog more than covers its debt obligations, while Nvidia CEO Jensen Huang said he was optimistic about the company’s financial strength.
