CoreWeave’s $35bn debt raises concerns across the AI sector

CoreWeave’s borrowing costs and share price came under pressure, raising concerns that the debt financing behind the AI buildout could affect other companies too. The episode has renewed questions about an AI investment bubble, although a falling share price alone does not prove that the business is failing.

As of its second-quarter results, CoreWeave owed more than $35 billion and had lost over $1 billion in the first half of the year, while reporting $103.7 billion in customer commitments, around 40 per cent due in 2028. Microsoft, OpenAI and probably Nvidia accounted for almost three-quarters of quarterly revenue; the article says those contracts give CoreWeave some support, but its ability to repay debt depends on continued demand and customers’ financial strength. Oracle shares also fell almost 10 per cent over the same period.