CoreWeave shares are under pressure following reports that a major AI data center complex in Texas faces delays of several months. Core Scientific is building the facility, which is planned for lease by OpenAI.
The setbacks stem from heavy rainstorms and subsequent design revisions. This has unsettled investors, contributing to a 46% drop in share price over the last six weeks. The decline wiped out $33 billion in market value.
Mixed messages from company executives regarding the scale of the delays compounded the situation. Scrutiny has intensified regarding the company’s execution risks, high debt levels, and path to profitability amid a broader market reevaluation of AI infrastructure investments.