CoreWeave stock experienced significant volatility on Friday, falling as much as 12% following reports of financing difficulties for a data center project the AI infrastructure company is expected to occupy. The decline marks another turbulent week for the Nvidia-backed firm, though shares remain up approximately 19% year to date in 2026.
According to Business Insider, Blue Owl Capital was unable to secure debt financing for a data center co-development project in Lancaster, Pennsylvania, where CoreWeave is slated to be a tenant. The financing challenges stem from lender reluctance to increase exposure to AI companies with below-investment-grade credit ratings.
Credit Rating Concerns Impact CoreWeave Financing
A debt arranger for major data center deals told Business Insider that the Pennsylvania project failed to attract interest from potential lenders. CoreWeave carries a B+ credit rating from S&P Global Ratings, which sits several notches below investment grade. This credit profile has made lenders hesitant to provide financing for infrastructure projects tied to the company.
The financing troubles highlight broader concerns about CoreWeave’s financial structure and business model. Despite backing from chip giant Nvidia, the company has faced skepticism from financial professionals regarding the long-term sustainability of renting compute power to AI customers.
Industry Skepticism and Failed Merger Attempts
CoreWeave’s high debt-to-equity ratio has raised red flags among some investors, particularly as enthusiasm for AI investments has cooled somewhat over the past six months. The company’s AI-dependent business model has drawn scrutiny during a period of increased caution in the technology sector.
In October, CoreWeave’s attempted merger with Core Scientific collapsed after Trip Miller, founder of investment firm Gullane Capital and Core Scientific’s third-largest shareholder, announced he would vote against the deal. The failed merger represented a significant setback for CoreWeave’s expansion plans.
Additionally, prominent short-seller Jim Chanos has raised concerns about CoreWeave, highlighting what he perceives as problems with the company’s financials and profitability. Chanos has warned investors against owning data center stocks, citing fundamental concerns about the sector’s economics.
Blue Owl Faces Separate Challenges
Meanwhile, Blue Owl Capital was already under scrutiny this week for reportedly halting redemptions on one of its private credit funds offered to retail investors. The move has added to questions about liquidity in private credit markets and the health of alternative investment vehicles.
The convergence of financing difficulties for the data center project and Blue Owl’s redemption issues has created additional headwinds for CoreWeave stock. However, the company’s year-to-date gains suggest some investors remain optimistic about its long-term prospects in the AI infrastructure space.
The situation underscores the challenges facing AI infrastructure companies as they navigate a more cautious lending environment. Lenders appear increasingly selective about exposure to companies with lower credit ratings, even in the high-growth AI sector.
It remains unclear whether Blue Owl and its development partner will pursue alternative financing arrangements for the Pennsylvania data center or if the project timeline will be affected. CoreWeave has not publicly commented on the financing challenges or their potential impact on its occupancy plans.
