CoreWeave stock closed down 15.5% on Wednesday, while yields on its bonds climbed close to 15%, as investors grew worried that technology companies are borrowing too heavily to finance the artificial intelligence build-out, CNBC reported. The yield to maturity on CoreWeave's 9.625% bond due in 2032 reached about 14.8%, and its 9.75% bond due in 2031 sat near 14.9%, per the report.
The selloff spread across the sector. Oracle fell nearly 9%, Nebius dropped 10% and Dell lost roughly 11%, while the Nasdaq Composite closed down 1.9%. The pressure hit companies outside the "Magnificent Seven" hardest, with debt concerns now the dominant narrative in AI markets.
CoreWeave bonds and the AI borrowing boom
CoreWeave is one of the so-called neoclouds, renting out GPU capacity for AI workloads. According to CNBC, Wells Fargo Investment Institute's Luis Alvarado said investors are now demanding more risk compensation, describing the era of easy money from the first nine months of the year as fading. Market data cited by CNBC shows hyperscalers Alphabet, Amazon, Meta Platforms and Oracle issued more than $228 billion in bonds as of Oct. 13, more than double the amount seen in all of 2025.
CoreWeave CEO Mike Intrator dismissed the market reaction in a memo obtained by CNBC, writing that when you are building a new type of technology company there will be periods when the market misunderstands and acts irrationally, and adding that the company is confident in a backlog that more than supports all of its debt obligations. S&P rates CoreWeave at B+, which is junk territory.
- CoreWeave 2032 bond (9.625% coupon): yield around 14.8%
- CoreWeave 2031 bond (9.75% coupon): yield around 14.9%
