CoreWeave, a major provider of AI computing power, faces financial instability as its bonds have been downgraded to distressed status. The company's stock price has dropped by more than 20 percent amid investor concerns regarding its business model and debt load.
As of the second quarter of 2026, CoreWeave reported a total debt exceeding $35 billion. The company remains unprofitable, recording losses of over $1 billion in the first half of the year. Its primary business model relies on leasing computing power.
The company holds $103.7 billion in contract backlogs, with approximately 40 percent of this amount expected in 2028. Microsoft, OpenAI, and Nvidia account for nearly three-quarters of the company's revenue as of the second quarter.
Market volatility has spread to other companies, with Oracle shares falling by nearly 10 percent. Co-founder Brannin McBee stated that the company aims to achieve an investment-grade rating to access capital from insurance firms.
