CoreWeave’s debt is becoming the whole AI industry’s problem
CoreWeave had a bad week last week.
Its bonds slipped into distressed territory by a common definition - when investors demand 1,000 basis points more in yield than they'd get from government bonds.
Last Tuesady Chamath "SPAC King" Palihapitiya noticed the distressed debt , and also asked whether the AI buildout was a private credit bubble .
Its shares are down more than 20 percent since Tuesday's close, which is kind of a lot! There even seemed to be some collateral damage in the market on other AI companies, too.
Now, I have also asked if the AI industry is a bubble, but when the SPAC King echoes concerns held by a lady whose ongoing questi … Read the full story at The Verge.
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