CoreWeave stock falls fifteen percent after bond yield concerns surface

CoreWeave shares fell 15% on Wednesday after investors grew worried about the company's rising borrowing costs. CoreWeave builds computing infrastructure for artificial intelligence and has borrowed heavily to pay for it.

On Tuesday, venture capitalist Chamath Palihapitiya shared a chart showing that yields on CoreWeave's bonds had reached nearly 15%. When bond yields rise, it means investors see more risk in lending money to a company. Elon Musk replied to the post with one word: "Yikes."

CoreWeave's CEO wrote in an internal memo that the market was behaving "irrationally." The company has raised over $35 billion this year. Its total debt reached around $52 billion by June, and interest costs more than doubled compared to the previous year.