CoreWeave, Inc. (CRWV) took a hit Wednesday, sliding alongside other artificial intelligence stocks as concerns mount about the financial viability of massive AI infrastructure projects. The sell-off came after reports surfaced that Blue Owl Capital won't be funding a $10 billion Oracle data center meant to power OpenAI's growing computing needs.

What's Behind the Sell-Off?

According to a Financial Times report, Blue Owl Capital has walked away from backing the planned 1-gigawatt data center after negotiations broke down. The facility was designed specifically to handle artificial intelligence workloads for OpenAI, making it a cornerstone project in the AI infrastructure buildout everyone's been talking about.

Here's the problem: there's no replacement backer lined up yet. Blackstone has reportedly kicked the tires on potentially stepping in as a financial partner, but nothing's been signed. That uncertainty is exactly the kind of thing that makes investors nervous.

For CoreWeave, the timing is particularly rough. The company is a major GPU cloud supplier for OpenAI, putting it right in the crosshairs of any concerns about AI infrastructure spending. The Oracle funding setback has triggered broader risk aversion across AI and tech stocks, with investors wondering if the pace of data center construction is slowing down and whether debt levels in the GPU-oriented infrastructure space are getting uncomfortably high.

Sources familiar with the matter cited concerns about rising debt and the sheer scale of capital required for AI infrastructure projects. When you're talking about $10 billion data centers, even deep-pocketed financial backers get cautious.

The Bottom Line

At last check, CoreWeave stock was down 5.76% to $65.48. It's a reminder that even in the hot AI sector, the infrastructure buildout depends on someone writing very large checks, and when those deals fall through, the whole ecosystem feels it.