CoreWeave stock plunges 16% as AI debt concerns spike bond yields

CoreWeave's stock fell 16% on Wednesday as investors grew concerned about the company's heavy debt levels 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 bond prices. CoreWeave has raised over $35 billion this year, with total debt and lease obligations around $52 billion as of June. Gartner warns that AI industry investments of nearly $1 trillion in 2026 and $6 trillion by 2030 may not generate sufficient returns, predicting over 80% of neocloud providers will cease standalone operations by 2030.