Shares of CoreWeave dropped fast on Monday after the company told investors it plans to raise $2 billion through debt that can later turn into stock, according to Bloomberg. The fall hit before markets opened, with the stock sliding 7% to $82.10.
The company said the sale involves convertible notes due 2031 through a private deal. It also left an option to grow the offering by another $300 million if needed.
The company went public in March, and traders hungry for AI exposure have piled in since. The firm operates from Livingston, New Jersey, and works closely with Nvidia, supplying computing power to clients like OpenAI and Microsoft.
CoreWeave said part of the debt proceeds will fund a derivatives trade meant to cut the risk of share dilution if the notes convert later. The rest will support day-to-day operations.
Trump to sign a “one rule” Executive Order on AI this week
CoreWeave’s announcement landed shortly before Donald Trump posted a message on Truth Social that he was signing into law an order that will make everything so easy for AI companies.
Trump wrote:
“There must be only One Rulebook if we are going to continue to lead in AI. We are beating ALL COUNTRIES at this point in the race, but that won’t last long if we are going to have 50 States, many of them bad actors, involved in RULES and the APPROVAL PROCESS. THERE CAN BE NO DOUBT ABOUT THIS! AI WILL BE DESTROYED IN ITS INFANCY! I will be doing a ONE RULE Executive Order this week. You can’t expect a company to get 50 Approvals every time they want to do something. THAT WILL NEVER WORK!”
The timing added political pressure to a session already tense for AI-focused names. Investors reacted to the funding structure, the conversion risk, and the policy backdrop all at once.
Elsewhere in tech, IBM said it will buy Confluent in a deal valued at $11 billion. The company agreed to pay $31 per share in cash for every outstanding share. The deal is expected to close by mid-2026. Confluent shares jumped 29% premarket, while IBM slipped 1%.
Confluent last closed at $23.14. IBM chief executive Arvind Krishna said, “With the acquisition of Confluent, IBM will provide the smart data platform for enterprise IT, purpose-built for AI.”
Energy-linked tech names kept rising as well. Steve Tusa, managing director and senior equity analyst at JPMorgan, said grid tech stocks still look attractive after a 30% gain this year. The sector includes hardware makers, software companies, and large-scale battery developers. Tusa said small drops in the group remain buying chances.
Heavy gains appeared in Asia. Korean transformer makers Hyosung Heavy Industries and LS Electric soared roughly 400% and 230% this year. In the United States, SolarEdge Technologies more than doubled, and Willdan Group traded near record highs.
Tim Chan, head of sustainability research for Asia Pacific ex-Japan at Morgan Stanley, said, “It’s not just about AI. Energy demand as a whole is growing.”
At Fidelity International, Gabriel-Wilson Otto said the shift is long-term and driven by electrification and rising power needs across Asia for energy security. He also said non-AI factors now play a larger role, while old grid systems need upgrades as weather grows more extreme.
Global grid spending is set to surge by 16% this year to $479 billion, and is projected to hit $577 billion by 2027. The International Energy Agency expects data center energy use to more than double by the end of the decade as new plants connect to the grid.
The Nasdaq OMX Clean Edge Smart Grid Infrastructure Index has climbed around 30% this year, beating the 22% gain in the Nasdaq 100.
The grid index trades at 21 times forward earnings, which makes it cheaper than the Nasdaq 100.
Grid stocks slipped last month when AI bubble fears hit markets, and some investors still doubt the group’s ability to hold up if AI slows.
