CoreWeave Inc.’s bonds tumbled on Wednesday, in some cases to new lows, after Democratic candidates in favor of slowing down data-center construction won a number of gubernatorial races, including in Texas.
CoreWeave is among the companies exposed to policy choices in Texas, where Gina Hinojosa ousted incumbent Greg Abbott to become the first Democratic governor of the Lone Star State in more than three decades. She has repeatedly called for an immediate moratorium on data center development. Other governors-elect, including Democrats Amy Acton in Ohio and Keisha Lance Bottoms in Georgia, have also advocated for slowing down data-center construction when campaigning in recent months. CoreWeave’s surging borrowing costs sent a shudder across markets last month, as traders raced to assess whether speculative-grade companies leveraged to the artificial-intelligence buildout could withstand higher interest rates.
The AI cloud-computing provider’s unsecured debt due in 2031 was among the worst-performing among high-yield borrowers on Wednesday, trading as low as 79.5 cents on the dollar, according to Trace pricing data. Its obligations due in 2030 and 2032 also fell, and are hovering around prices widely considered to be distressed, with yields exceeding 15%. CoreWeave shares fell 7.2% to $49.85 at 10:24 a.m. in New York, on track to close at the lowest level since May 2025.
