CoreWeave's debt-fueled AI boom faces investor doubt

CoreWeave's shares and bonds fell again Thursday despite CEO assurances, exposing growing investor doubts about AI infrastructure funded heavily by debt. The Nvidia-backed cloud provider's slump has fueled a global tech selloff. The stock dropped nearly 2% after sliding as much as 8.3% to its lowest since May 2025, extending Wednesday's 15% decline. CoreWeave's 2031 bonds yielded near 16%, a distress signal, as analysts question whether AI revenue can justify massive borrowing. CoreWeave raised its capital spending forecast to $39 billion in August and expects a $2.13 billion loss this year. Gartner predicts 80% of neoclouds could shut by 2030, while US tech giants plan over $700 billion in AI spending.