In 2023, Blackstone executives asked CoreWeave what a GPU is and whether AI is real. Three years later, the $2.3 billion financing Blackstone helped arrange has become the blueprint for a chip-backed lending market.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
CoreWeaveartificial intelligencecreditsemiconductorsBlackstone
Open a keyword to see other news on the same topic.
Related tickers and likely impact
MSFT
• NeutralMicrosoft
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $4.0T |
| Close on 10/22/2026 | 521.58 |
| Change that session | -2.13% |
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/22/2026 | 212.28 |
| Change that session | -4.36% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Blackstone's Jon Gray says CoreWeave can 'find a way through' financing pressure
Blackstone COO Jon Gray told CNBC that CoreWeave, despite concerns about its massive debt, will “find a way through” its financing challenges and that its underlying business is strong. CoreWeave has about $51.6 billion in total debt, including roughly $35 billion in notes, bonds and loans, and its shares fell 3.55% Thursday and 14% over the past week as investors questioned how it will fund its data centers. Gray said demand for computing power is strong while supply is constrained, and that if neoclouds get through this phase, compute pricing is up 50%. Blackstone's third-quarter revenue of $3.22 billion missed the $3.28 billion expected, while adjusted EPS of $1.32 beat the $1.26 consensus; Gray called it a challenging quarter due to high energy prices and rising Treasury yields. He expects a strong fourth quarter and 2027, and IPOs to resume once markets calm.
- Chip Stock Losing - Streak Claims Diverge as SOXX Slides 11 . 6 %
SOXX closed at $493.67 on 16 October 2026, down 11.6% over 20 trading days on heavy volume. Benzinga counts nine straight losing sessions, the longest since May 2006, while 247wallst.com counts eight, the longest since 2008; the article notes both tallies cannot be exact. Both outlets link the slide to credit concerns around CoreWeave, but no bond pricing, rating action or company filing in the public record confirms this. The article places the sell-off against a Fed rate of 3.75%-4.00% and a 10-year Treasury yield of 5.1%, while noting CPI and unemployment data do not signal acute tightening. The FINRA short-sale ratio for SOXX reached 0.619 on 15 October, consistent with bearish bets building during the decline.
- Stock Market Today, Oct. 22: CoreWeave Slides on Bernstein Downgrade and Financing Worries
CoreWeave (CRWV) closed down 10.06% at $55.60 and hit a new 52-week low after Bernstein cut its price target to $51 from $74 while keeping an “Underperform” rating, citing financing concerns. Bernstein estimates CoreWeave needs about $85 billion to fund its committed backlog, and higher interest rates have weighed on neocloud companies that borrowed heavily. Peers Nebius Group and Iren also fell sharply, while the S&P 500 dropped 1.22% and the Nasdaq Composite fell 2.60%. Nvidia CEO Jensen Huang said demand for neoclouds is “off the charts,” and Blackstone COO Jon Gray praised CoreWeave's management, with the article suggesting that sector fears may create opportunities for companies that manage their investments and financing well.
- Blackstone Jas Khaira says fears over AI - buildout debt are overblown
Blackstone's Jas Khaira, who leads its AI hub Blackstone N1 (BXN1) in San Francisco, said the firm is financing AI infrastructure through loans to data centers, investments in neoclouds and frontier models, with $1.3 trillion in assets under management. Its compute-financing model, pioneered with a $2.3 billion loan to CoreWeave in 2023, relies on customer contracts and GPUs as collateral, and BXN1 committed $5 billion to Crux AI. Khaira acknowledged that CoreWeave's debt has ballooned to about $50 billion and that credit spreads have widened, sending CoreWeave shares down more than 20% recently. Firmus cancelled its planned Australian IPO at a target valuation of roughly $30 billion because the market would not accept that price. Khaira still said AI companies' demand for compute continues to drive buildout, and downplayed the debt concerns.
- Microsoft Pays Cash For AI. CoreWeave Borrows.
Microsoft closed on Oct. 19 just 1.8% below its 52-week high set on Oct. 13, while CoreWeave sits 56.3% below its high set on Oct. 29, 2025. Microsoft funds its AI build-out from operations: it generated $182.9 billion of cash in the fiscal year to June 30, 2026, spent $115.9 billion on capital projects, and holds $19.8 billion more cash and short-term investments than debt. CoreWeave borrows to build: its debt rose from $6.3 billion to $51.6 billion in 21 months, its operating income covered none of its $1.9 billion interest bill, and its net debt of $46.1 billion exceeds its $33.7 billion market value. The article frames the gap as a difference in funding model rather than sales, and stresses that it is general education, not investment advice.
- What Wrong With CoreWeave Stock ? | The Motley Fool
CoreWeave (CRWV) shares closely track sentiment around AI stocks, since the company rents out compute capacity and gives customers access to Nvidia's AI chips. Last week the stock fell below $60, hitting a 52-week low of $59.51, and was down 26% over the past month. Concerns that the war in Iran may not end soon and that inflation could keep interest rates high have weighed on the stock. With high debt and no profitability, the company reported a net loss of $626 million in its last earnings report in August, largely due to $640 million in interest costs. The author argues that the lower valuation does not offset the risks, which depend heavily on AI demand and interest rates.
Related markets
Latest news
- What we want to see when this data center stock reports earnings next week
Stocks mostly fell on Friday, with the Dow down about 1% as selling spread beyond the AI trade, and West Texas Intermediate crude rose above $103 per barrel on renewed US-Iran tensions. Palo Alto Networks and CrowdStrike were the Investing Club's best performers, each up more than 6%, while the Club exited Broadcom. Meta shares fell again, extending Thursday's nearly 7% decline, as investors questioned how its AI buildout will be funded after free cash flow turned negative for the first time since its 2012 IPO. The Club is sticking with Meta given its strong fundamentals and Muse roadmap, and it added a few shares of GE Vernova during Thursday's sell-off. Ahead of GE Vernova's earnings next week, the Club wants to see continued strong orders for heavy-duty gas turbines and strong pricing.
- SpaceX earnings, tech selloff lead to rocky week for investors
SpaceX shares rose after a third-quarter report beat estimates and Elon Musk openly backed a possible merger with Tesla, but a Thursday tech sell-off erased those gains. Connectivity revenue, mostly from Starlink, climbed 69% to $5.2 billion, and Starlink added 1.6 million subscribers, bringing broadband consumer subscribers to just under 14 million. Bloomberg reported SpaceX is in talks with Crown Castle and American Tower to lease space on 80,000 US cell sites to build out a terrestrial network. SpaceX and Tesla have each formed special committees to explore a combination worth about $3.5 trillion, though Musk flagged the hurdle of approval from 50% of Tesla shareholders and Reuters reported his endorsement could delay the process by weeks. The Thursday slide also came as about 911.5 million insider shares became eligible for sale.
- Wells Fargo Names Top Pick Ahead of Q3 Earnings
Wells Fargo named Amazon its top long position and preferred mega-cap stock heading into third-quarter earnings, expecting another positive revision to AWS revenue and operating income. The firm cites AWS revenue acceleration and strong margins as the main drivers, while acknowledging near-term operating income risks from fuel costs and longer-term uncertainty around agentic commerce. It views Amazon's setup as more straightforward than other mega-cap tech names, where hedge fund positioning adds complications. Wells Fargo also sees AWS as the key driver of positive estimate revisions after the report.
- SEC flags tokenization as high-risk area in 2027 market examinations
The SEC added tokenization to its fiscal 2027 examination priorities, flagging tokenized securities as an emerging market risk alongside quantum computing and extended trading hours. Tokenization is an area of focus for critical market infrastructure and a high-risk area at clearing agencies, alongside default management, securities lending and operational risks. Cryptocurrencies, however, remain absent as a standalone examination priority for a second consecutive year, after the fiscal 2025 priorities included a dedicated section on crypto assets. The move comes as traditional firms expand into tokenized securities, including an OKX and Intercontinental Exchange joint venture that filed to offer tokenized shares in more than 60 US-listed companies.
- How Broker Downgrade Has Changed The Case For Agnico Eagle Stock
Freedom Broker downgraded Agnico Eagle Mines, citing operational risks at Canadian Malartic and Odyssey and trimmed earnings and EBITDA projections after revenue came in slightly below estimates. The broker noted the stock trades at a premium to peers, so any execution issues or cost inflation could weigh more heavily on profit expectations. The company, with long-life gold assets in Canada, Australia, Finland and Mexico, reports a return on equity of 20.5% and a net profit margin of 40.4%. Forecasts now point to declining earnings and revenue over the next three years, and the shares have fallen about 6% over one day and roughly 13% over the past month ahead of the October 28 earnings release. Some pessimistic analysts see revenue falling toward US$10.2b and earnings toward roughly US$4.8b by 2029, though those forecasts predate the downgrade.
- As the U.S. Pulls Chip Making Back Home, the Toolmakers Win First
Chipmaking is being pulled back to the U.S., pouring billions into new factories and creating strong demand for equipment. In July, TSMC added $100 billion to its Arizona plans, lifting its planned U.S. investment to $265 billion, while Micron raised its U.S. spending plan to more than $250 billion through 2035. Tool orders can arrive before a new fab reaches full production. The article argues that toolmakers such as ASML and Applied Materials get paid first, while fab operators like Intel, TSMC and Micron face their own risks. ASML trades at a P/E above 40, and export restrictions or Taiwan tensions could disrupt its sales.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.