CoreWeave Shares, Bonds Slide Further as AI Debt Fears Mount

3-line summary

• CoreWeave shares fell another 6% in premarket trading Thursday after dropping more than 15% Wednesday, per Investing.com; its April-2026-issued bonds due 2031 saw yields top 16%, and its five-year CDS spread reached about 1,000bp, implying roughly a 63% probability of default within five years (up from about 30% a year ago). The company carries about $50 billion in debt, with analysts estimating 2026 revenue of about $13 billion against a $2.13 billion loss, and a capex plan of $35-39 billion (raised by $4 billion in August). Elon Musk reacted to the rising bond yields with 'yikes.'
• Co-founder Brannin McBee told the Financial Times the company is pursuing an investment-grade credit rating, which he said would unlock 'unlimited' capital-raising ability. Gartner forecast that about 80% of 'neocloud' companies could shut down by 2030, with more than $3.5 trillion in AI-infrastructure investment at risk of impairment. CEO Mike Intrator reiterated in a Wednesday staff memo that the company's contracted backlog comfortably exceeds its debt obligations, but the selloff continued regardless.

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