CoreWeave shares fall 16% as AI debt concerns mount

CoreWeave shares plunged 16% on Wednesday as investor concerns intensified over the company's heavy debt load used to finance AI infrastructure, with bond yields surging to nearly 15%. The AI cloud provider's 2032 bond yield reached 14.8% and its 2031 bond hit 14.9%, reflecting a sharp drop in debt prices. CoreWeave has raised over $35 billion this year, with total debt and lease obligations around $52 billion as of June. Gartner warned that AI revenue projections of $3.6 trillion through 2030 will fall short of planned capital expenditures, predicting over 80% of neocloud providers will cease independent operations by that time.