Blackstone Jas Khaira says fears over AI - buildout debt are overblown

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• Leveraged loan market takes on AI infrastructure debt

  Companies raising funds for hyperscale data centers are increasingly turning to the leveraged loan market, as collateralizing such deals appears to be the latest phase in AI infrastructure financing. Since April, issuers including CoreWeave, Lambda, Crusoe Energy Systems and Volta Infrastructure Holdings have launched data-center expansion loans. Institutional leveraged loan issuance backing data center infrastructure totals $13.2 billion year to date.

  Yahoo Finance·16/10, 13:06creditdata centersartificial intelligence
• CoreWeave's business model explained: Why investors are worried

  The video likens CoreWeave to a landlord that borrowed heavily to buy 51 data centers and leases them to customers such as Microsoft and Meta. The speaker says it earned about $2.6 billion last quarter, roughly $1.5 billion after operating and capital costs, yet paid $640 million in debt repayments in the same period. Those payments are projected to rise by $300 million next year to $900 million, leaving the company about $626 million in the red after accounting for everything. Debt has grown to about $35 billion, with $10 billion due within 15 months against $5.5 billion in cash, while the company plans to spend around $6.4 billion on new data centers over the next three months. An online calculation cited in the video put the chance of default over the next three years at 55%, close to a coin flip.

  Yahoo Finance·21/10, 13:35• NVDA• MSFTCoreWeavedata centersdefault risk
• AI debt concerns drive default insurance costs to record highs

  Insurance costs against defaults by technology companies reached record highs as investors grew concerned about debt financing the AI investment boom. Heavily indebted data center operators were hit hardest, as hotter-than-expected U.S. inflation raised expectations for higher interest rates. CoreWeave, a loss-making company owing nearly US$50 billion, saw its five-year CDS spreads surpass 1,100 basis points, implying a 64% default risk over five years versus about 30% a year earlier. Its shares lost nearly a fifth of their value in two days, while Anthropic's third-quarter revenue rose 45% from the previous quarter to $16.8 billion without easing concerns. Deutsche Bank's Jim Reid noted that capex is increasingly funded by debt rather than free cash flow, so credit price action deserves closer attention.

  memphissun.com·18/10, 03:00▼ AMZN▼ GOOGL▼ META▼ MSFTAI investmentcreditdata centers
• AI credit worries send default insurance costs to record highs

  The cost of insuring against tech company defaults hit record highs on October 15 as investors grew worried about the debt financing the AI boom. Heavily indebted data center operators were hit hardest, as hotter-than-expected U.S. inflation and expected rate hikes raised doubts about whether AI investments can earn enough to service borrowing costs. CoreWeave, a loss-making company owing nearly US$50 billion, saw its five-year CDS spreads top 1,100 basis points and its 2031 bond yield reach 16 percent before easing to about 14 percent, while its shares lost nearly a fifth of their value in two days. Oracle's CDS approached 300 basis points, while Amazon, Alphabet and Meta hit record highs but rose more slowly. Anthropic's third-quarter revenue rose 45 percent to $16.8 billion, according to an investor, but did little to ease concerns.

  bignewsnetwork.com·18/10, 00:00▼ NVDA▼ AMZN▼ GOOGL▼ METAdefault riskAI investmentdata centers
• CoreWeave Is Projected to Have a 6.3x Gross Leverage Ratio by Year End. The Market Is Worried About the Neocloud's Balance Sheet.

  CoreWeave's stock fell nearly 15.5% on Oct. 14 as investors worried about its debt-funded data center build-out, with higher bond yields raising borrowing costs. At the end of the second quarter, total debt was $27.6 billion against roughly $5 billion in shareholder equity. Analysts project debt rising to $47.6 billion and adjusted EBITDA reaching about $7.6 billion by year-end, a gross leverage ratio near 6.3x, and its 9.625% senior notes due 2032 fell below $80. The company reports a revenue backlog over $104 billion, but 65% of first-quarter revenue came from its top two customers, making it a riskier AI stock than hyperscalers like Microsoft.

  Yahoo Finance·17/10, 21:50▼ NVDACoreWeavebondsdata centers
• Microsoft Pays Cash For AI. CoreWeave Borrows.

  Microsoft closed on Oct. 19 just 1.8% below its 52-week high set on Oct. 13, while CoreWeave sits 56.3% below its high set on Oct. 29, 2025. Microsoft funds its AI build-out from operations: it generated $182.9 billion of cash in the fiscal year to June 30, 2026, spent $115.9 billion on capital projects, and holds $19.8 billion more cash and short-term investments than debt. CoreWeave borrows to build: its debt rose from $6.3 billion to $51.6 billion in 21 months, its operating income covered none of its $1.9 billion interest bill, and its net debt of $46.1 billion exceeds its $33.7 billion market value. The article frames the gap as a difference in funding model rather than sales, and stresses that it is general education, not investment advice.

  Yahoo Finance·20/10, 11:49• MSFTartificial intelligenceMicrosoftCoreWeave

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  Yahoo Finance·22/10, 14:21• TSLA
• SpaceX Just Crushed Wall Street's Q3 Targets -- but a Potential Tesla Merger Is Even Bigger News

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  Yahoo Finance·22/10, 14:11• TSLA
• Blackstone's Jon Gray says CoreWeave can 'find a way through' financing pressure

  Blackstone COO Jon Gray told CNBC that CoreWeave, despite concerns about its massive debt, will “find a way through” its financing challenges and that its underlying business is strong. CoreWeave has about $51.6 billion in total debt, including roughly $35 billion in notes, bonds and loans, and its shares fell 3.55% Thursday and 14% over the past week as investors questioned how it will fund its data centers. Gray said demand for computing power is strong while supply is constrained, and that if neoclouds get through this phase, compute pricing is up 50%. Blackstone's third-quarter revenue of $3.22 billion missed the $3.28 billion expected, while adjusted EPS of $1.32 beat the $1.26 consensus; Gray called it a challenging quarter due to high energy prices and rising Treasury yields. He expects a strong fourth quarter and 2027, and IPOs to resume once markets calm.

  CNBC·22/10, 14:11
• Chip stocks break a bear trap after a $2.6 trillion rout — here are the levels bulls need to hold

  The PHLX Semiconductor Index (^SOX) is down about 3% after dipping to 11,000, a support level that has rescued chip stocks twice since September, so the bear-trap rebound only holds if that floor does. Since Oct. 6, all 60 stocks in Yahoo Finance's chip basket have fallen, erasing about $2.7 trillion in market value; Lam Research and Applied Materials are each down nearly 30%, AMD nearly 20%, and Nvidia 9%. Lam fell despite record revenue because it said supply limits would cap its outlook and China sales would be “meaningfully down” in December. The Nasdaq 100 is down about 6% over the same period. The article flags 10,450–10,550 as the zone to watch if 11,000 breaks, and 12,600–12,700 as the level bulls must reclaim, while semiconductor ETFs saw record flows over the past week.

  Yahoo Finance·22/10, 14:10▲ NVDA
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