CoreWeave's Default Risk Soars as AI Infrastructure Debt Burden Mounts

CoreWeave's credit risk hit an all-time high Thursday as markets repriced the AI cloud-computing company's ability to service its mounting debt, with credit default swaps pricing in a 60% probability of default within five years. The Nvidia-backed infrastructure provider saw the cost of its unsecured 2032 bonds spike to 14.8% yield, up from 9.625% when issued in June—a jump of roughly five percentage points in four months. That pricing pushed the debt below 80 cents on the dollar, the threshold that typically signals financial distress.