AI spending vs returns: CoreWeave, Meta and Oracle face debt reality check

Investors are questioning whether AI revenues can justify massive data-centre spending, as bonds tied to projects backed by CoreWeave, Meta, Oracle and others have fallen amid rising borrowing costs, construction delays and uncertain returns. The industry faces a debt reality check with $4.9 trillion going into data centres, prompting concerns that spending may outpace actual revenue generation from AI services. The bond declines reflect growing scepticism about the financial viability of these projects, with higher financing costs and delays adding pressure to companies heavily reliant on debt to fund their AI infrastructure expansion.