coreweave

The financing risks of AI infrastructure and the impact of rising oil prices are hitting Wall Street. The Nasdaq 100 index fell 5.5% over the week, marking the largest weekly decline since the tariff turmoil in April 2025. The Philadelphia Semiconductor Index has fallen for eight consecutive trading days, the longest losing streak since 2008, with a decline of about 16% during this period.Some bond yields of CoreWeave briefly surpassed 15%, raising concerns in the market about its AI infrastructure financing costs, capital expenditure returns, and debt repayment ability. The company's stock price fell 12% on Friday, down more than 50% from its high earlier this year. Cathie Wood's ARK Investment Management increased its holdings in CoreWeave and Cerebras Systems.Brent crude oil rose to about $110 per barrel, while WTI crude oil increased by 3.8% on Friday, closing at $101.71. Rising oil prices are pushing up inflation expectations, with the yield on 10-year U.S. Treasury bonds rising to 5.097%, diminishing the appeal of government bonds as a safe haven during stock market declines. Market attention on AI trading has shifted from computing power demand to financing costs and profit returns, and the earnings reports of tech giants will test whether AI revenues can support sustained high capital expenditures.

According to Gate market data, U.S. stocks closed on Friday with the Nasdaq down 2.14%, the S&P 500 index down 1.09%, and the Dow Jones initially down 0.34%. Coreweave fell 11.91%, SK Hynix fell 6.58%, Arm fell 6.94%, SanDisk fell 6.85%, Oracle fell 4.64%, and Tesla fell 2.13%. The Nasdaq Golden Dragon China Index fell 1.3%, Baidu fell 2.93%, and Alibaba fell 1.83%.

According to the Financial Times, investor confidence in whether the artificial intelligence boom can generate enough revenue to support the massive debts of data centers is weakening, leading to a significant drop in the financing bond prices of some large data center projects in the United States. Some bonds that provide funding for data center construction for companies like Meta, Nvidia, and Oracle have fallen below par value. For example, the bonds of CoreWeave, a cloud computing infrastructure provider invested in by Nvidia, have dropped to below 80 cents on the dollar, reaching levels typically considered distressed bonds, with yields nearing 15% on Thursday. The company's stock price fell 17% this week, while competitor Nebius dropped 18%, and Nvidia's market value evaporated by about $270 billion over the past week.Ludovic Subran, Chief Investment Officer of Allianz Group, stated that data center bonds are entering a "Darwinian moment," where projects with weaker credit quality will face survival challenges. He noted that power supply issues and construction delays have led to widening credit spreads, reflecting that the market had previously been overly optimistic in pricing the execution risks of data center debt. The core concern in the market is the significant gap between the scale of AI infrastructure investment and future revenues. OpenAI has postponed its IPO until next year, and Anthropic's quarterly sales growth has slowed, exacerbating doubts about the sustainability of growth in the AI industry.Research firm Gartner predicts that by 2030, 80% of new cloud service providers may not be able to continue operating independently. It estimates that AI data center owners will need to achieve $8.5 trillion in revenue by the end of 2030 to cover capital and financing costs and achieve reasonable returns, but consumer and enterprise spending on AI services is expected to reach only $3.6 trillion at most, indicating that over $4 trillion in assets may face impairment risks by 2032. In some areas of the United States, restrictions have been tightened due to issues related to water usage, noise, and air pollution from data centers, and delays in power supply approvals have further hindered project progress. Investors remain cautious about the circular financing model where clients and suppliers within the industry finance each other. Nvidia CEO Jensen Huang stated on Thursday that he believes CoreWeave does not need Nvidia to provide backstop support and mentioned that the company's capital costs are decreasing and operational strength is continuously improving.

NVIDIA CEO Jensen Huang stated that COREWEAVE's strength is increasing every day, and its capital costs are actually decreasing.

According to Gate market data, U.S. stocks closed lower on Wednesday, with the Dow Jones Industrial Average down 0.09%, the S&P 500 index down 1.1%, and the Nasdaq down 1.88%. Micron Technology fell 4%, SK Hynix fell 6%, NVIDIA fell 3%, Coreweave fell over 15%, and Dell fell over 11%. The Nasdaq Golden Dragon China Index closed down 1.39%, with Bilibili and NIO both falling over 4%.

CoreWeave, an AI cloud service provider supported by NVIDIA, is seeking to attract funding from insurance companies to reduce the financing costs of purchasing AI chips and building infrastructure. Co-founder Branning McBee stated that the company plans to raise funds through methods such as chip-backed loans, with financing exceeding $35 billion this year.

Grayscale's Research Director Zach Pandl stated in his column The Stack on October 8 that the rising demand for AI is due to decreasing usage costs and technology's ability to perform tasks more autonomously, thereby increasing the demand for computing power and the physical infrastructure that supports AI. Lower costs can unleash more AI activities, and the low-cost competition of open-source weight models is driving down token prices, making cheaper intelligence economically viable for more applications and automated workflows.The article cites that Anthropic's latest Sonnet model claims to reduce the cost of each task by up to 30%; OpenAI's always-on agent dots, launched on September 29, can work towards user goals around the clock, potentially significantly increasing the demand for computing power. Pandl compares that chatbots primarily answer questions, while agents execute multi-step processes to achieve goals, with tasks like preparing for client meetings potentially consuming 5 to 50 times the tokens of a single chat interaction, and always-on agents may extend processing beyond a single conversation.Pandl cites Goldman Sachs' prediction that by 2030, token consumption could increase 24 times, primarily driven by agents; even with improved efficiency, if usage grows faster, the total demand for computing power may still rise. He points out that digital activities still rely on physical infrastructure that requires time to deliver, such as electricity, data centers, and GPUs, and cheaper AI can coexist with tight computing power supply, mentioning that CoreWeave recently signed new contracts at higher computing power prices. His conclusion is that cheaper intelligence and stronger agents may expand use cases and usage enough to offset efficiency gains, thereby supporting the demand for scarce computing power and benefiting its owners.

Coreweave (CRWV.O) announced its entry into the Indian market, planning to expand its artificial intelligence cloud platform.

Coreweave stated that, from the customer's perspective, NVIDIA chips are currently the best choice.

A data center developer supported by an affiliate of Blue Owl Capital announced a bond issuance to raise $1.1 billion, betting on AI computing power, to fund the Digital Drive data center project near Richmond, Virginia. This data center has an IT capacity of 76 megawatts and will be fully leased by CoreWeave under a 15-year, $2.94 billion contract, expected to be operational from 2027 to 2028.

According to Bloomberg, a data center developer supported by an affiliate of Blue Owl Capital announced a bond issuance to raise $1.1 billion to bet on AI computing power, funding the Digital Drive data center project near Richmond, Virginia.The data center has an IT capacity of 76 megawatts and will be fully leased by CoreWeave under a 15-year, $2.94 billion contract, expected to be operational from 2027 to 2028.

Coreweave (CRWV.O) launched a multi-rack NVIDIA VERA RUBIN NVL72 cluster.

Market news reports that Blockfusion has signed a 15-year artificial intelligence campus leasing agreement with Coreweave (CRWV.O).

MoffettNathanson raised the target price for SpaceX (SPCX.O) from $131 to $142, and raised the target price for Coreweave (CRWV.O) from $106 to $107.

According to the official announcement, Gate ETF will launch MINIMAX3L/USDT, MINIMAX3S/USDT, CRWV3L/USDT, CRWV3S/USDT, AAOI3L/USDT, AAOI3S/USDT, KORU3L/USDT, and KORU3S/USDT at 16:00 (UTC+8) on September 9, supporting 3 times leverage for long or short positions on MiniMax, CoreWeave, Applied Optoelectronics AAOI, and the daily MSCI Korea 3 times bullish ETF KORU. Gate ETF currently supports trading of 420 types of tokens.Gate ETF has also launched a new trading challenge activity. Users participating in the above 3 times ETF trading can share a reward of 60,000 USDT. During the event, the first trade volume of no less than 200 USDT can receive a 10 USDT ETF transaction fee cashback voucher, limited to the first 1,000 participants; a daily trading volume of no less than 1,000 USDT can complete a check-in, with a maximum cumulative reward of 100 USDT; the total cumulative trading volume of all participants reaching the corresponding tier can unlock a maximum prize pool of 30,000 USDT, shared by eligible users based on their trading volume ratio, with a maximum of 200 USDT per person. Invite friends to participate in trading, with a total invitation prize pool of 10,000 USDT.

According to a Goldman Sachs report on August 20, CoreWeave's Q2 revenue met expectations, with an EBIT margin exceeding market consensus by 200 basis points, and the 2026 revenue guidance surpassing market expectations by 1%. Revenue backlog increased by 5% quarter-over-quarter to $104 billion, with over $25 billion in new committed orders since Q3. Active power installations rose from 1GW in Q1 to over 1.5GW, with contracted power installations reaching 4.2GW. Goldman Sachs raised the 12-month target price from $121 to $139, indicating a 53% upside from the current stock price, maintaining a neutral rating.Goldman Sachs believes that CoreWeave's short-term certainty is clear: demand continues to outpace supply, pricing for new and old GPU generations remains high, and capacity is expanding as expected. The new generation of chips (Blackwell, Vera Rubin) is continuously setting new price highs, and recent A100 contract deliveries have been extended to 2029. The proportion of enterprise customers is increasing (Caterpillar, IBM, Nissan, ZF), and AI computing power demand is spreading from tech giants to the real economy. Goldman Sachs expects EBITDA to grow from $3.1 billion in 2025 to $31.3 billion in 2028. The neutral rating reflects a wait-and-see approach until software and platform services become more certain contributors to profit margins before making a more positive judgment.

Hudson River has signed a multi-billion dollar artificial intelligence deal with Coreweave (CRWV.O).

Goldman Sachs is testing investor demand for an approximately $1.15 billion junk bond issuance, the proceeds of which will be used to build a data center leased to the AI cloud computing company CoreWeave.Insiders revealed that the project is located near Richmond, Virginia, and is being developed by PowerHouse Data Centers, a subsidiary of American Real Estate Partners, in collaboration with Chirisa Technology Parks, with expectations to enter the market as early as September. This financing comes at a time when investors are becoming more cautious about AI infrastructure debt. As the issuance of bonds related to AI data centers has increased this year, the market has begun to demand higher yields. CoreWeave previously supported a high-yield bond issuance for many data center developers through long-term lease agreements, but its speculative-grade credit rating has also raised financing costs.