CoreWeave Credit Risk Hits Record as June Debt Reaches $35.6 Billion

CoreWeave’s credit risk has reached a record as the AI cloud company pursues new borrowing for data-center expansion, with about $35.6 billion in debt at the end of June.

Yields on the company’s bonds maturing in 2032 and 2031 reached 14.8% and about 14.9%, respectively. Bond prices and yields move in opposite directions, so higher yields mean investors are demanding more return to hold the debt.

A central concern is whether CoreWeave can turn contracted work into cash flow while financing its expansion. No default has been reported.

On Oct. 14, CoreWeave shares fell 16%, while yields on its two bonds neared 15%. Cash-flow updates, refinancing activity and any new contracts are among the next developments to watch.