CoreWeave Inc. Chief Executive Officer Mike Intrator, facing a plunge in the company’s stock and bond prices, said the market is acting “irrationally” and that he remains confident in the AI cloud company’s business model.

CoreWeave’s deal backlog is large enough to more than support its debt obligations, Intrator said in an internal memo reviewed by Bloomberg News. The executive made the remarks after the AI cloud company’s bonds tumbled to levels that typically indicate distress.

The company’s shares fell 15% to $65.78 on Wednesday, marking their biggest single-day decline since February. The stock had gained 8.7% this year through Tuesday’s close.

“When you are building a new type of technology company, there will be periods of time when the market misunderstands and acts irrationally,” Intrator wrote to staff. “We are confident in our business model, our customers, the extraordinary quality of our execution, and the relentless discipline around the financial engine we have built.”

CoreWeave, since its public debut last year, has become one of the most high-profile gauges of the worldwide AI infrastructure boom for investors.

While the stock has soared by more than 60% since it listed, handing the company a valuation of nearly $37 billion, investors have grown increasingly concerned about the prospects of an AI bubble and the tens of billions of dollars being borrowed across the industry to fund an unprecedented buildout of data centres.

Intrator said “factors like the weakness and delays surrounding the attempted IPOs and debt financings” of several CoreWeave rivals “are bleeding into the narrative around CoreWeave.”

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