CoreWeave Just Dropped a $2 Billion Bomb--And Investors Are Already Fleeing

CoreWeave shares came under pressure after the AI infrastructure company unveiled a $2 billion convertible debt raise that could potentially expand its balance sheet and introduce future share conversion. The notes are due in 2031, with a coupon between 1.5% and 2%, according to people familiar with the transaction. Shares fell as much as 7% to $82.10 in premarket trading, a reaction that reflects near-term uncertainty as investors digest both leverage expansion and the possibility of dilution. CoreWeave only went public in March, and the offering arrives at a time when AI spending continues to accelerate and capital requirements remain substantial.Management is issuing the notes in a private placement, with an option to increase the total by an additional $300 million. The bonds are being sold with a conversion premium of 25% to 30%, suggesting a long-term view that upside could be captured if the company continues to benefit from the surge in AI-driven infrastructure demand. The deal is expected to price after Monday's market close. CoreWeave did not comment further beyond its formal announcement, but investors have increasingly viewed the business as a way to participate in rising demand for large-scale compute, with customers including OpenAI and Microsoft and a strategic partnership with Nvidia that positions the company at the center of the build-out.A portion of the proceeds will fund a derivatives transaction designed to reduce potential dilution from note conversion, while the remainder will go toward operating needs as capacity expands. The structure could be interpreted as CoreWeave positioning itself for continued demand in AI compute as spending trends remain elevated. While markets reacted to the financing with caution, the long-term thesis may hinge on whether the company continues to scale into a growing infrastructure cycle that could extend as AI models become more compute-intensive over time.