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CoreWeave CEO notes strong backlog in memo to reassure staff over market scrutiny
Mike Intrator said CoreWeave’s $104 billion backlog can cover debt obligations as investors question the company’s rising borrowing costs.
- On Wednesday, CoreWeave stock fell 16% as yields on its bonds surged to nearly 15%, reflecting investor concerns that technology companies are accumulating excessive debt to build out artificial intelligence infrastructure.
- Social Capital founder Chamath Palihapitiya suggested the rapid expansion of AI-related borrowing may be creating a private credit bubble, prompting billionaire Elon Musk to reply with a single word: "Yikes."
- CoreWeave's unsecured debt due in 2032 traded below 80 cents on the dollar, indicating distress, while the company reported a $104.2 billion revenue backlog and peers Nebius Group and IREN Limited saw stock declines of 11% and 12% respectively.
- In an internal memo, CoreWeave CEO Mike Intrator called the market reaction "irrational," emphasizing that the firm's deal backlog is large enough to "more than support its debt obligations."
- Luis Alvarado, co-head of global fixed income strategy at Wells Fargo Investment Institute, noted that the "era of easy money" is dissipating and investors now demand greater compensation for AI-related risks.
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16 Articles
Channel News Asia+2 Reposted by 2 other sources
CoreWeave CEO notes strong backlog in memo to reassure staff over market scrutiny
Oct 14 : CoreWeave CEO Mike Intrator said on Wednesday market can sometimes "misunderstand and act irrationally", with shares of the AI cloud-computing provider closing down around 15 per cent.Here are some details:• The company's deal backlog is large enough to more than support its debt obligations
·Singapore, Singapore
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Watch CoreWeave, (CRWV) Neocloud Leverage a Concern for Gil Luria
Gil Luria, head of technology research at DA Davidson, says CoreWeave is “destroying value at every turn” if the company is “borrowing at 9% and the best return they can get off of that is a 5% return, it doesn’t matter how much they scale.”
·New York, United States
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Coverage Details
Total News Sources16
Leaning Left3Leaning Right0Center6Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
L 33%
C 67%
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