CoreWeave Stock Plunges on AI Data Center Debt Crisis, Raising Questions About Sector Financing

CoreWeave, one of the largest independent AI data center operators, saw its stock tumble roughly 20% in a single week as investors grow increasingly concerned about the company's debt-heavy financing model and rising borrowing costs, triggering a broader reassessment of how the trillion-dollar AI infrastructure boom will be funded. The decline marks a sharp reversal for a company that has benefited enormously from explosive demand for GPU-accelerated computing capacity. CoreWeave carries approximately $50 billion in total obligations, comprising roughly $35 billion in debt and $16.3 billion in data center lease commitments. The company's bond yields have deteriorated markedly, with some instruments reaching into the 15% range and credit spreads widening dramatically, signaling investor concerns about default risk. CoreWeave's interest expense stood at $640 million in the second quarter and is expected to climb to between $860 million and $940 million in the third quarter, creating significant cash burn despite a reported revenue backlog of $104.2 billion.