Why CoreWeave is in the crosshairs of the AI scare
CRWV•CoreWeave shares fell more than 15% this week and yields on its 2030 bonds rose 500 basis points to nearly 16%, as investors weighed its $50 billion debt, losses and data-center risks. The company reported a $104.2 billion revenue backlog at the end of the second quarter and more than $25 billion in new commitments early in the third quarter.
1. Selloff hits shares and bonds
Loss-making, heavily indebted cloud company CoreWeave came under pressure as investors grew concerned about an AI bubble. Its shares fell more than 15% this week, while yields on its 2030 bonds jumped 500 basis points to nearly 16%.
2. Debt and spending concerns
Investors focused on CoreWeave’s $50 billion debt and its borrowing to finance chips, land and energy for data centers that will generate income in the future. The company reported $5.1 billion in revenue and a $1.2 billion net loss in 2025. Revenue is expected to double this year, while capital expenditure is estimated to rise fourfold to between $35 billion and $39 billion.
3. Backlog and market risks
Chief Executive Mike Intrator told employees the company has a strong demand pipeline and that its deal backlog more than covers its debt obligations. CoreWeave reported a $104.2 billion revenue backlog at the end of the second quarter, followed by more than $25 billion in new commitments early in the third quarter. Investors have also pointed to data-center delays, power and component bottlenecks, and the company’s reliance on debt financing.
