CoreWeave’s falling shares and bond prices have raised questions about the money being used for AI. The company, backed by Nvidia, has around $50 billion in debt. Investors are concerned that its future earnings may not be enough to pay its bills and fund further growth.
On October 15, 2026, CoreWeave stock shares fell again, even as CEO Mike Intrator expressed confidence in the company’s customer contracts. Reuters reported that the stock had dropped more than 15% on Wednesday, followed by a further 6% decline in premarket trading on Thursday.
The company’s troubles also reflect a wider concern across the AI industry. Tech companies are spending billions on data centers, powerful chips and computing equipment. Some are borrowing heavily to pay for these investments.
Investors are now questioning whether the money earned from AI services will cover these costs. As borrowing becomes more expensive, companies face greater pressure to manage debt and show their investments can generate profits.
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CoreWeave Faces Growing Concerns Over Its $50 Billion Debt
CoreWeave provides computing power to companies that develop and run AI models. To meet rising demand, it spends heavily on Nvidia chips, data centers, and other equipment. The company relies on borrowed money to fund much of this expansion, adding to its debt burden.
Investors are now questioning whether CoreWeave can manage its debt as spending continues to rise. Yields on its bonds due in 2031 have climbed above 16%, suggesting that investors see greater risks in lending to the company.
According to Reuters, the cost of insuring CoreWeave’s debt against default has also risen sharply. The latest figures indicated a nearly 63% chance of default within five years, compared with about 30% a year earlier.
Strong AI Demand Has Yet to Ease Concerns About CoreWeave’s Profits
CoreWeave’s financial troubles show that strong demand for AI services does not always lead to higher profits. Even when customers need more computing power, companies must manage the high costs of building and maintaining the infrastructure that supports them.
Analysts cited by Reuters expect CoreWeave to bring in nearly $13 billion in revenue in 2026. However, the company is also projected to post a loss of about $2.13 billion. Its spending plans have added to investor concerns. In August, CoreWeave raised its forecast for annual capital spending by $4 billion, putting the expected total at up to $39 billion.
The company needs this money to expand its data centers, purchase chips and meet the computing needs of its customers. These investments are necessary to support its business, but they also increase the amount of money it needs to raise.
This leaves CoreWeave facing a difficult balance. It must keep investing to meet growing demand, while managing its debt and controlling its costs.
Nvidia’s Support Gives CoreWeave Some Relief
CoreWeave has major customers, including Microsoft and OpenAI, and strong ties with Nvidia. According to Reuters, Nvidia has agreed to buy any computing capacity CoreWeave cannot sell to other customers through April 13, 2032.
CEO Mike Intrator told employees in a memo that CoreWeave’s customer contracts were worth more than its debt. Still, this does not mean CoreWeave is free from financial trouble. The company is also seeking an investment-grade credit rating, co-founder Brannin McBee told the Financial Times. A higher credit rating could make it easier for CoreWeave to borrow money.
Gartner Warns of Risks From Heavy AI Infrastructure Spending
CoreWeave’s financial troubles have added to concerns about whether revenue from AI services can justify the huge cost of building and running data centers. On October 15, Gartner warned that around 80% of specialised cloud providers, known as neoclouds, could shut down by 2030. The firm also said more than $3.5 trillion in AI infrastructure investments could lose value if companies fail to generate sufficient returns.
Gartner expects AI infrastructure spending to reach nearly $1 trillion in 2026, followed by another $6 trillion between 2027 and 2030. Analyst Will Sommer warned that revenue from AI services may not be enough to make these investments profitable. If demand falls short of expectations, companies could struggle with expensive infrastructure and rising debt payments.
ALSO READ: AI Infrastructure Spending Statistics
AI Debt Concerns Spread Across Technology Stocks
CoreWeave stock price has raised concerns across the AI industry, affecting other companies investing heavily in AI infrastructure. Reuters reported that shares of rival cloud providers Nebius, Applied Digital and IREN fell between 3.2% and 5% on Thursday.
The wider tech sector has also suffered losses. The Philadelphia Semiconductor Index dropped 12% over six sessions, wiping out around $1.6 trillion in market value. The Nasdaq also fell more than 3% during the same period.
Investors are increasingly questioning the cost of the AI boom. Major US technology companies are expected to spend more than $700 billion on infrastructure in 2026, according to Reuters.
Companies such as Alphabet and Meta are also facing questions about the returns on their AI investments. Even businesses with strong finances could face pressure if spending continues to rise faster than revenue.
