CoreWeave chief executive Mike Intrator said on Wednesday market can sometimes "misunderstand and act irrationally", with shares of the AI cloud-computing provider closing down around 15 percent.
The company's deal backlog is large enough to more than support its debt obligations, Intrator told employees in a memo that was seen by Reuters.
Issues such as the difficulties and delays observed in the attempted IPOs and debt financings of some of CoreWeave's rivals "are bleeding into the narrative around CoreWeave", Intrator said in the memo.
This came as the yield to maturity on its 9.625 percent bond due in 2032 is sitting at 14.8 percent, while that of its 9.75 percent bond due in 2031 is around 14.9 percent - levels signaled distressed credit.
On Tuesday, Tech investor Chamath Palihapitiya, founder and CEO of investment firm Social Capital and CEO of AI company 8090, flagged CoreWeave’s surging yields on X. His post drew a reply from Tesla and SpaceX chief Elon Musk, who wrote, “yikes.”
CoreWeave has reported revenue backlog of US$104.2 billion (HK$812.76 billion) in the second quarter, up from US$99.4 billion in the first quarter.
On top of the backlog, the company said it had secured more than US$25 billion of net new customer commitments in the third quarter.
Reuters and staff reporter
