economy
February 27, 2026
CoreWeave CEO defends spending plans, tries to combat debt narrative as stock plummets 18%
Coreweave CEO Mike Intrator said the company has intentionally accelerated its infrastructure buildout.
TL;DR
- Coreweave CEO Mike Intrator defended the company's massive spending plans amid an 18% stock drop.
- Intrator cited a "once in a generation moment" for capacity demand and an "enormous" backlog.
- The company plans to spend $30-35 billion in 2026, exceeding estimates and fueling profitability concerns.
- Concerns exist about the long-term sustainability of Coreweave's debt load and business model, which relies on debt to finance AI chip purchases for rental.
- Intrator stated that the company's cost of capital has decreased by 300 basis points in the last 12 months and 600 basis points over the last two years.
- Wall Street analysts anticipate volatility due to Coreweave's infrastructure ramp pressuring margins and increasing costs.
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