CoreWeave Shares Drop 25% as $50B Debt Raises Bankruptcy Concerns

CoreWeave shares fell 25% over the week as concerns about the AI cloud provider’s debt and bankruptcy risk put financing for AI infrastructure in focus for U.S. markets. CoreWeave is Nvidia-backed and faces debt estimated at $50 billion to $52 billion. Credit-default swaps tied to the company climbed above 1,000 basis points, a level associated with distressed credit. Those signals have intensified questions about its capacity to manage its obligations. Management has said the company’s contract backlog is sufficient to cover those obligations.

Source: TokenPost