CoreWeave Bonds Drop After Meta Eyes AI Cloud Rival, Pressuring €2 Billion Deal
Updated
Updated · Bloomberg · Jul 2
CoreWeave Bonds Drop After Meta Eyes AI Cloud Rival, Pressuring €2 Billion Deal
3 articles · Updated · Bloomberg · Jul 2
Summary
CoreWeave’s euro bond fell nearly 2 cents over two days to 96.8, extending losses after reports that Meta is planning a competing AI cloud business.
The pressure spread to CoreWeave’s other recent debt: its $1.25 billion bond, also sold in June, dropped about 1.3 cents to 97.3 by Wednesday’s close.
Meta’s reported move hit both CoreWeave shares and bonds, raising concerns that a powerful customer and partner could become a direct rival in AI infrastructure.
The selloff lands just weeks after CoreWeave issued the €2 billion note, the first euro-denominated junk bond from a US AI infrastructure company.