Blackstone’s Gray: CoreWeave can work through $51.6B debt load

CoreWeave can work through the financing strain weighing on its shares, Blackstone chief operating officer Jon Gray said, pointing to healthy demand for computing power behind the company’s roughly $51.6 billion debt load. Gray made the comments in an interview with CNBC on Thursday, after Blackstone reported third-quarter results.

The neocloud operator has seen its stock fall, its bond yields climb and spreads on its credit default swaps widen over the past week as investors questioned how it will fund its data centers and at what cost. CNBC reported that CoreWeave carries about $35 billion of its debt in notes, bonds and loans.

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Key facts

• CoreWeave holds roughly $51.6 billion in total debt, about $35 billion of it in notes, bonds and loans, per CNBC.
• CoreWeave shares fell 3.55% on Thursday and were down 14% over the past week.
• Gray said pricing for compute has risen 50% for neoclouds that reach the other side of the financing squeeze.
• Blackstone posted quarterly revenue of $3.22 billion against $3.28 billion expected by LSEG-polled analysts, while adjusted earnings of $1.32 per share beat the $1.26 consensus.
• Blackstone stock rose 4% on Thursday.

Demand strong, capital harder to get

Gray framed the problem as one of financing rather than customer interest. He said demand for computing power is strong across the private companies Blackstone holds, while supply remains constrained. For neoclouds that get through the current pressure, he said, legacy chips are holding more value than expected and their data centers are leased below market rates.

He described CoreWeave as an example of a neocloud with a capable chief executive, saying such companies will find a way through the challenge. “The underlying business is actually quite strong,” Gray said.

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Cryptobriefing reported that CoreWeave is backed by Nvidia and put its debt at approximately $50 billion, a slightly lower figure than the $51.6 billion cited by CNBC. It described Gray as Blackstone’s president and said markets were interpreting his remarks as a potential mitigant to bankruptcy risk, while noting that observers will watch for refinancing or capital-raising moves and new long-term customer contracts.

Blackstone’s quarter and the IPO window

Gray spoke after Blackstone reported a mixed quarter, which he attributed to high energy prices and rising Treasury yields. He said the firm’s flagship strategies still outperformed comparable public market indices and that he expects a strong fourth quarter and 2027 despite headwinds including the rising cost of capital, government deficits and capital being crowded out by the AI infrastructure build.

He also expects initial public offerings to resume once markets and geopolitics settle, and said the firm takes a long-term view on where it places capital.

Why it matters

CoreWeave sits at the center of the AI build-out, where heavy borrowing funds the data centers that host computing for AI customers. Its widening credit spreads signal that lenders are rethinking how much risk they will take on neocloud balance sheets, a shift that could raise costs for the whole sector. A backer of Gray’s standing saying the business is sound may ease some investor anxiety, but it does not change the company’s funding needs.

What to watch

CoreWeave’s next capital-raising or refinancing move, and any new long-term customer contracts, will be the clearest signals of whether it can fund expansion on acceptable terms. The company’s next earnings report and any further moves in its credit default swap spreads will show whether pressure is easing.

This is not financial advice, and markets for stocks and credit remain volatile and uncertain.

Written by

Benjamin

Benjamin Carter covers business, finance, and the stock market for StockPil, focusing on the trends and data that matter to everyday investors.

Sources: CNBC, Cryptobriefing