CoreWeave stock plunges 16% as AI debt fears hit bond yields

CoreWeave's stock fell 16% on Wednesday as investors grew concerned about heavy corporate borrowing to fund AI infrastructure, with bond yields on its debt surging to nearly 15%. The AI-focused cloud provider's 2031 and 2032 bonds saw yields rise to roughly 14.9% and 14.8%, respectively, reflecting a sharp drop in bond prices and increased demand for risk compensation. CoreWeave has raised over $35 billion this year, with total debt and lease obligations around $52 billion as of late June. The selloff follows a Gartner warning that over 80% of neocloud providers may cease independent operations by 2030, as AI investments are projected to reach $1 trillion in 2026 against only $3.6 trillion in related revenues through 2030.