Bloomberg: CoreWeave’s unsecured 2032 bonds fell below 85 cents on the dollar, the price that usually signals distress, yields near 15% on concern about AI borrowing binge

Those notes are $1.25B of 9.625% senior debt sold in June, so lenders have marked them down sharply within 4 months of issue. The shares fell as much as 17% today, though the stock remains more than 60% above its March 2025 IPO price.

The business runs on expensive debt. CoreWeave buys GPUs, builds data centers and rents the capacity to AI developers, and it funds most of that with borrowing.

The interest bill is now bigger than the losses. The company lost $626M in the second quarter while net interest expense reached $640M, driven by heavy capital spending. Revenue is growing fast, but the cost of financing the growth is consuming it.

It’s spreading beyond CoreWeave. Investors are treating it as a test of debt-funded AI infrastructure in general. Oracle’s bonds weakened, and AI-linked stocks from Nebius to Dell fell as markets questioned how much debt sits beneath the buildout.