CoreWeave 2032 yield tops 16% as credit default swaps spike
CoreWeave, a big name in AI data centers, just saw its 2032 bond yield shoot past 16%, a sign that investors are getting nervous about lending money for these massive tech projects.
Their credit default swaps also spiked on November 5, hinting at growing concerns over the company's ability to pay back its debts.
Ohio Texas Georgia threaten AI funding
A lot of this anxiety comes from possible new regulations and political changes in states like Ohio, Texas, and Georgia.
There's talk that incoming Democratic governors could slow down or block funding for future AI infrastructure.
Interestingly, it's not just CoreWeave: NVIDIA, Broadcom, and Amazon have all seen their credit default swaps rise too.
Still, despite the nerves and higher costs to borrow money, companies have managed to raise $67 billion for AI projects since late October.