CoreWeave's debt distress spotlights AI industry credit risk
CoreWeave’s bonds slipped into distressed territory after investors demanded roughly 1,000 basis points over government debt, and its shares fell more than 20% in a week. As of its second-quarter report the company owed over $35 billion, posted large first-half losses, and is seeking investment-grade funding (including from insurers), raising broader concerns about financing and contagion across AI-focused neoclouds and related corporate bonds.