Nvidia CEO Says CoreWeave Needs No Backstop as Shares Extend Slide, CDS Hits Record

3-line summary

• Nvidia CEO Jensen Huang told Bloomberg at a Stockholm event that CoreWeave does not need a financial backstop from Nvidia, saying 'CoreWeave's strength is improving every day' and 'I'm optimistic. Their cost of capital is actually decreasing,' per Investing.com. CoreWeave shares fell about 3% Thursday, following a 15% plunge Wednesday and an earlier intraday drop of more than 7%.
• CoreWeave's five-year CDS price spiked intraday by 74.5bp to a record 1,194.5bp (ICE Data Services), implying over a 60% probability of default within five years. Nvidia holds about a 10% stake in CoreWeave — its second-largest shareholder — while also supplying it with computing equipment; concerns have grown over 'circular financing,' in which suppliers like Nvidia help fund CoreWeave's buildout, which it then uses to buy more of those suppliers' equipment.

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