CoreWeave, Inc. (NASDAQ:CRWV) is trading lower Wednesday, falling alongside artificial intelligence stocks following reports suggesting that Blue Owl Capital will not provide funding for a $10 billion Oracle data center.
- CoreWeave shares are retreating from recent levels. Why is CRWV stock dropping?
What To Know: According to a Financial Times report, Blue Owl Capital will not move forward with the backing of a planned $10 billion data center project after negotiations stalled. The facility was expected to be a 1-gigawatt site designed to support artificial intelligence workloads for OpenAI.
The report states the breakdown in funding discussions leaves the financing of the data center in question, as no replacement backer has been finalized. Blackstone has held talks to potentially step in as a financial partner, but no agreement has been signed, according to the report.
Oracle's funding setback with Blue Owl has sparked risk aversion in AI and tech stocks, including CoreWeave, which is a major GPU cloud supplier for OpenAI. The culmination of slower-than-expected AI data center buildouts and rising financial stress for GPU-oriented infrastructure appears to be weighing on neocloud stocks, with CoreWeave front and center in the space. Sources cited concerns related to rising debt levels and the scale of AI infrastructure spending.
CRWV Price Action: At the time of writing, CoreWeave stock is trading 5.76% lower at $65.48, according to data from Benzinga Pro.
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