CoreWeave CEO Blames Market "Irrationality" for Plunge in Stock and Bond Prices

Deep News02:43

Facing a sharp decline in both its share price and bond prices, AI cloud services provider CoreWeave CEO Mike Intrator said the market's reaction has been "irrational" and that he remains fully confident in the company.

The company's bond prices fell on Wednesday to levels that typically signal financial distress.

In an internal memo, Intrator stated that CoreWeave, Inc. (CRWV) has a massive contract backlog sufficient to support its debt repayment obligations.

Intrator wrote in the memo: "When you are building a new type of technology company, there will always be periods when the market does not understand and reacts irrationally. We are confident in our business model, our customers, the quality of our excellent execution, and the strict discipline of our financial system."

Intrator noted that several of CoreWeave's competitors have encountered difficulties with their IPOs and debt financing, which is affecting outside perceptions of CoreWeave.

A CoreWeave spokesperson confirmed the authenticity of the email.

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