CoreWeave Stock Surges 6%, But Investors Are Still Worried

CoreWeave shares jumped more than 6% on Tuesday morning after the AI infrastructure company announced that most of its planned data-center capacity in Copenhagen was operational. The news gave investors fresh hope that its expensive expansion is making progress. Yet serious financial concerns remain. Investors buying CoreWeave’s debt are demanding unusually high returns, reflecting fears about the company’s ability to repay what it owes. Why Are Investors Worried About CoreWeave’s Debt? CoreWeave rents powerful Nvidia chips to companies developing artificial intelligence. Building those data centers costs billions, much of it borrowed. The financial pressure is growing. CoreWeave’s quarterly net interest expense reached $640 million between April and June, compared with $267 million a year earlier. Its bonds tell an even more worrying story.

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