CoreWeave Stock Plummets as SpaceX Expands AI Infrastructure
CoreWeave shares crashed over 15% due to high debt levels, allowing SpaceX to capture market share by renting out its Colossus AI data center capacity.
Shares of neocloud providers plummeted this week as investors questioned the sustainability of high debt levels used to fund AI infrastructure. CoreWeave Inc. saw its stock drop more than 15% on October 14, 2026, after reports revealed the company has accumulated over $50 billion in debt and operating leases with projections of negative free cash flow through 2028. Other providers, including Cerebras Systems Inc., Nebius Group N.V., and Iren Ltd., experienced similar slumps between 13% and 14%. While Nvidia Corp. CEO Jensen Huang signaled support for CoreWeave, some analysts predict massive asset writedowns by 2032.
This financial instability has created a competitive opening for Space Exploration Technologies Corp. (SpaceX), which is leveraging roughly $100 billion in cash following its June IPO to expand into AI infrastructure. SpaceX is now renting excess compute capacity from its Colossus data centers to external clients. The company has secured monthly revenue agreements with Anthropic for $1.25 billion, Google Cloud for $920 million, and Reflection AI for $150 million, in addition to another cloud services deal worth approximately $1.11 billion per month.
Meanwhile, BCE Inc. is proceeding with a $1.7 billion investment in an AI data center near Regina, Saskatchewan. CoreWeave and Cerebras Systems Inc. serve as anchor tenants for the facility. BCE is utilizing an infrastructure-only model to limit direct processing risks, though analysts warn that the credit risk of its tenants remains a concern.
