Tech Slides on CoreWeave Credit Fears

Dow Jones
3 hours ago

Shares of technology companies tumbled as fears intensified that cloud-computing provider CoreWeave had overextended itself on credit to build artificial-intelligence infrastructure.

CoreWeave shares plunged, losing more than 10%.

One strategist said the worries about data-center developers' credit loads may lead to opportunistic mergers and acquisitions.

"We've had this drumbeat...'AI takes so much money...AI takes so much money and it does!" said JJ Kinahan, senior vice president at exchange firm CBOE Global Markets. "We're coming to a little bit of a point where some of the firms may have to decide to team up with others because it does take a lot of money. But that's also no different to when internet started. The first movers often end up inside other companies."

Tesla shares fell after the electric automaker unveiled its second-generation Roadster sports car with a flourish of engineering prowess.

 

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