CoreWeave shares plunge 16% as AI debt concerns spike bond yields

CoreWeave shares fell 16% on Wednesday as investors grew concerned about the company's heavy debt load used to finance AI infrastructure expansion, with bond yields surging to nearly 15%. The AI-focused cloud provider's 2032 bond yield reached 14.8% and the 2031 bond hit 14.9%, reflecting a sharp drop in security prices. CoreWeave has raised over $35 billion this year, with total debt and lease obligations around $52 billion as of June. Research firm Gartner warned that over 80% of neocloud providers may cease independent operations by 2030, citing insufficient AI revenue to justify planned investments. CEO Michael Intrator called the selloff irrational market behavior.