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Blackstone's Gray says CoreWeave can weather AI financing squeeze
Blackstone COO Jon Gray told CNBC CoreWeave's business is strong and the AI cloud company will work through financing pressure despite heavy debt.
- New headline Was: “Blackstone's Jon Gray says CoreWeave can 'find a way through' financing pressure”
- Our desk filed its story
Blackstone chief operating officer Jon Gray said Thursday that CoreWeave Inc. can work through financing pressure on its artificial intelligence data-center buildout1.
Speaking on CNBC's "Squawk Box," Gray said neocloud companies face challenges raising the capital needed to deliver on their promises1. He cited CoreWeave as an example of a firm with a talented chief executive and said the company will "find a way through it," while calling the underlying business quite strong1.
CNBC reported that CoreWeave's stock, bond yields and credit-default-swap spreads have moved against the company over the past week as investors questioned how it will keep financing data centers and at what cost1. The report said CoreWeave has about $51.6 billion in total debt, including about $35 billion in notes, bonds and loans1. Shares fell 3.55% on Thursday and were down 14% over the past week, CNBC said1.
Gray said demand for computing power remains strong across private companies Blackstone holds, while supply is constrained1. For neoclouds that can get through the squeeze, he said compute pricing is up 50%, legacy chips are worth more than many expected, and data centers are leased below market1.
Gray spoke after Blackstone reported mixed third-quarter results: revenue of $3.22 billion missed the $3.28 billion LSEG consensus, while adjusted earnings of $1.32 a share beat the $1.26 estimate, CNBC said1. CNBC's page showed Blackstone shares higher on Thursday1. He described a challenging quarter because of high energy prices and rising Treasury yields, said flagship strategies beat comparable public indexes, and said he expects a strong fourth quarter and 2027 despite higher capital costs and crowding from AI infrastructure spending1.
