Add as a preferred source on GoogleCoreWeave’s $51.6 Billion Debt Sharpens Questions on AI Funding
Blackstone President and Chief Operating Officer Jon Gray said CoreWeave’s underlying business remains strong as investors weigh data-center financing costs.
CoreWeave’s $51.6 billion debt load is intensifying scrutiny of how the AI infrastructure company will finance further data-center growth, even as Blackstone President and Chief Operating Officer Jon Gray described its business as strong.
About $35 billion of CoreWeave’s debt is in notes, bonds and loans. The company and other neocloud providers face challenges raising the capital needed to deliver their AI buildouts.
“They’ll find a way through it,” Gray said of CoreWeave and its peers. He said CoreWeave’s “underlying business is actually quite strong.”
Investors have focused on how CoreWeave will fund its data centers and what that financing will cost. The company’s shares fell 3.55% Thursday and were down 14% over the past week. Bond yields rose and credit-default-swap spreads widened over the same period.
Gray said demand for computing power is strong across Blackstone’s private-company holdings, while supply remains constrained. He said compute pricing is up 50% for neocloud providers that get through financing challenges, and added that legacy chips are worth more than expected and data centers are leased below market.
Gray has previously argued that AI demand is outpacing infrastructure supply, a view explored in his assessment of the AI supply gap.
John Kim
John Kim reports on the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.