CoreWeave, Inc. (CRWV) saw its stock plummet 5.04% intraday on Tuesday, extending a six-week decline that has erased $33 billion in market value. The data-center provider's struggles highlight growing investor concerns about the sustainability of the AI infrastructure boom.

The company has faced multiple headwinds, including construction delays at a key Texas site due to heavy rains, mixed messaging from CEO Michael Intrator during earnings calls, and a failed $9 billion merger with Core Scientific. Prominent short-seller Jim Chanos has also criticized CoreWeave, warning that its business model—leasing GPU-powered computing to AI firms—is a "commodity" with low margins and high depreciation risks.

Broader fears of an AI bubble have compounded CoreWeave's challenges. The company remains unprofitable despite doubling quarterly revenue, and its high debt levels have raised concerns about financial stability. Analysts like D.A. Davidson's Gil Luria describe its balance sheet as "the ugliest in technology," with operating margins too thin to cover interest payments.