Blackstone says CoreWeave can navigate financing pressure amid AI infrastructure demands

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Highlights

CoreWeave faces financing pressure with $51.6 billion in total debt and shares dropping 3.55% Thursday and 14% over the past week.
Compute pricing for neocloud operators is up 50% amid strong demand and constrained supply, with older chips and below-market leases increasing in value.
Blackstone's Q3 revenue was $3.22 billion versus $3.28 billion expected, while adjusted earnings of $1.32 per share beat the $1.26 consensus, lifting shares nearly 3%.

Financing strain meets strong AI demand

As reported by CNBC, Gray says CoreWeave and other neocloud providers are under pressure from the amount of capital required to build out AI infrastructure, even as end-market demand remains solid. He says CoreWeave has a strong chief executive and will find a way through its financing challenges.

Gray says demand for computing power remains strong across private companies held by Blackstone, while supply is constrained. He says compute pricing is up 50% for neocloud operators that can get through the current funding squeeze, adding that older chips are proving more valuable than expected and some data center leases are below current market rates.

CoreWeave has come under market pressure over the past week as investors question how it will continue financing its data centers and at what cost. The company has about $51.6 billion in total debt, including roughly $35 billion in notes, bonds and loans, while its shares fall 3.55% on Thursday and 14% over the past week.

Blackstone points to client returns and market reopening hopes

Gray makes the comments after Blackstone reports mixed third-quarter results. The firm posts quarterly revenue of $3.22 billion, below the $3.28 billion expected by analysts polled by LSEG, while adjusted earnings of $1.32 a share top the $1.26 consensus estimate.

He describes the quarter as challenging because of high energy prices and rising Treasury yields, but says Blackstone delivers for clients and that its flagship strategies outperform comparable public market indices. Blackstone shares rise nearly 3% following the results.

Gray says he expects a robust fourth quarter and a strong 2027 despite higher capital costs, government deficits and crowding out of capital from AI infrastructure spending. He also says initial public offerings should resume once market and geopolitical conditions settle, adding that investors may need patience before the broader exit window reopens.

In our earlier article on the rising costs and bottlenecks in the U.S. AI data center buildout, we noted that many planned projects are being delayed or questioned as funding becomes harder to secure. We highlighted how high interest rates, construction overruns, and power constraints are testing investor confidence—putting the focus not on demand, but on whether developers can finance and complete capacity expansions on time.

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