Investors sour on AI infrastructure debt as CoreWeave bond costs and stock fall
Overview
Yields on CoreWeave's bonds rose further, and the cost to insure them is up 150% from a year ago, according to Semafor.
Its stock fell 28% at one point this week.
Semafor reports that investors are also worried about other AI infrastructure borrowers. Oracle's $160 billion debt is rated just above junk status, and Microsoft's AAA-rated debt costs 25% more to insure than three months ago.
Written by AI from the articles below · updated Oct 16, 7:26 AM ET
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- Semafor · TechnologyNewsAI infrastructure debt costs rise as investors sour on CoreWeave, Oracle and Microsoft
AIYields on CoreWeave's bonds rose further, and the cost to insure them is up 150% from a year ago, while its stock fell 28% at one point this week. Oracle's $160 billion debt is rated just above junk status, and Microsoft's AAA-rated debt costs 25% more to insure than three months ago. Federal Reserve chair Kevin Warsh says AI is probably the most consequential change to the economy in his lifetime, but the path there will likely be bumpy.
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