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 after the company’s unsecured bond yield neared 15%, unsettling investors.
- On Wednesday, CoreWeave shares plunged roughly 15% as yields on its unsecured debt surged to 15%, reflecting investor concern that the AI cloud provider is taking on excessive debt to fund data center expansion.
- Investor Chamath Palihapitiya shared a chart warning of a potential "private credit bubble," prompting billionaire Elon Musk to respond on X with a single word: "Yikes."
- CoreWeave CEO Mike Intrator defended the company in an internal memo, calling the market reaction "irrational" and stating the $104 billion deal backlog is sufficient to support debt obligations.
- Competitors Nebius Group and IREN Limited fell 11% and 12% respectively, while Luis Alvarado, co-head of global fixed income strategy at Wells Fargo Investment Institute, noted investors now demand greater compensation for risk.
- The International Monetary Fund warned that an AI-related market correction is one of three risks that could trigger sharp financial tightening, as analysts question whether AI revenue can sustain such debt-fueled capital spending.
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CoreWeave CEO notes strong backlog in memo to reassure staff over market scrutiny - Regional Media News
Oct 14 (Reuters) - 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%. Here are some details: • The company's deal backlog is large enough to more than support [...]
Channel News Asia
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
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.”
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