COREWEAVES SLUMP SPOTLIGHTS GROWING BURDEN OF DEBT BEHIND AI BOOM

What happened: CoreWeave shares steadied after a sharp slump tied to investor worries about the debt financing behind the AI build-out. Nvidia CEO Jensen Huang played down the fears, saying CoreWeave's financial strength is improving. Key numbers: About $50 billion in debt. Why it matters: The slump fueled a global rout in AI stocks, underscoring doubts about whether future revenue can keep pace with spending. Analysts said investors are questioning how the build-out is funded, and Gartner warned about 80% of neoclouds could shut down by 2030.

CoreWeave shares steadied after a sharp slump tied to investor worries about the debt financing behind the AI build-out. Nvidia CEO Jensen Huang played down the fears, saying CoreWeave's financial strength is improving.

The slump fueled a global rout in AI stocks, underscoring doubts about whether future revenue can keep pace with spending. Analysts said investors are questioning how the build-out is funded, and Gartner warned about 80% of neoclouds could shut down by 2030.