CoreWeave debt concerns: AI demand is strong, but can the data centre major’s cash flow justify its spending? Explained

Investor concerns about debt financing for artificial intelligence (AI) infrastructure are spreading into technology stocks, with CoreWeave and other companies facing increased scrutiny over the financial risks of their expansion.

CoreWeave shares fell during trading on Thursday before recovering to close 5.94% higher. The move followed a 15.5% plunge on Wednesday. Other AI cloud companies, including Nebius and Iren, also came under pressure before recovering some or all of their losses.