Key facts
- CoreWeave has about $50 billion in debt.
- AI infrastructure stocks fell this week due to inflation and borrowing cost worries.
- Rival Nebius Group shares fell 1.5% on Friday morning.
CoreWeave's shares and bonds were headed for steep weekly losses on Friday as investors grew uneasy about the debt financing behind the AI build-out amid rising borrowing costs. The company's shares were down more than 15% this week, heading for their biggest weekly decline in about two months. AI infrastructure stocks have fallen this week as hot inflation raised borrowing-cost worries. BCA Research analysts said CoreWeave's business model is a highly indebted play on future data center demand, making it considerably more sensitive to interest rates than the broader tech sector. Shares of rival Nebius Group also fell 1.5% on Friday morning, also set for their steepest weekly fall in two months. CoreWeave is a loss-making cloud company with about $50 billion in debt. The yield on its October 2031 maturity dollar bond briefly surged past 16% on Thursday and is set to decline for a fifth straight week. The cost of insuring against CoreWeave's debt surged past 1,000 bps to record highs this week.