The loss-making cloud company has about $50 billion in debt and has become a focus of concerns that the data-center boom is being fueled by credit.
Shares of Nvidia-backed CoreWeave steadied on Thursday after a sharp slump, as investors worried about the debt financing behind the artificial intelligence build-out. The loss-making cloud company has about $50 billion in debt and has become a focus of concerns that the data-center boom is being fueled by credit, straining newer players and pressuring cash flows even at giants such as Alphabet and Meta Platforms. CoreWeave’s slump fueled a global rout in AI stocks, underscoring investor doubts about whether future revenue from the technology can keep pace with the spending.
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