CoreWeave's plan to expand AI data-center capacity is meeting financing friction, but Blackstone President and Chief Operating Officer Jon Gray said Thursday the company's business fundamentals remain sound.
Gray made the remarks in an interview with CNBC's Squawk Box. He said AI cloud providers face a hard financing task as they add facilities to honor capacity commitments, and described CoreWeave as having a talented chief executive. “They'll find a way through it,” Gray said, while expressing confidence in the company's business fundamentals.
CNBC reported CoreWeave had about $51.6 billion in total debt, including around $35 billion in notes, bonds and loans. The outlet said its shares declined 3.55% Thursday and stood 14% lower over the prior week. It also reported rising bond yields and wider credit default swap spreads, linking those moves to investor concern about the expense of future financing.
Gray said demand for computing power remained strong among Blackstone's private companies, while supply was limited. For neocloud firms able to get through current challenges, he said compute pricing was up 50%. He also pointed to legacy chips retaining more value than expected and data-center leases priced below market as potential support for the sector.
Gray placed those pressures within a broader market setting that includes higher capital costs, government deficits and AI infrastructure projects competing for funding. He said Blackstone expected a strong fourth quarter and 2027 despite those crosscurrents, pointing to underlying economic and earnings strength.
EconoTimes previously covered a CoreWeave bond's yield reaching 15% amid rising borrowing costs.
