CoreWeave’s Debt Insurance Costs Just Hit a Record. Can It Keep Funding Its AI Boom?
CoreWeave (NASDAQ:CRWV), one of the leading “neoclouds” racing to meet the seemingly endless demand for artificial intelligence (AI) computing power, is once again making headlines. This time, however, it’s not for setting another record sales figure or inking a new deal with OpenAI or Anthropic.
Instead, CoreWeave is in the news because its rather large debt load is getting more expensive to insure. In other words, investors are worried the company could default.
On Thursday, the spread on its five-year credit default swaps (CDS) reached a record level. By midday, it stood at 1,038 basis points, up 164% year over year. 1000 basis points is generally considered in “distressed” territory.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.