The All-In hosts asked whether the AI trade is breaking as CoreWeave’s stock sold off, with its bonds marked down to 80%. CoreWeave borrows heavily to expand its GPU capacity: second-quarter revenue rose 112.3% to $2.575 billion, but free cash flow was -$5.74 billion and interest expense climbed to $640 million from $267 million a year earlier. Its 2032 bonds yielded 15% versus 5.09% for the 10-year Treasury, while the bulls argue demand remains massive and operating cash flow turned positive at $679 million. The article also points to Procter & Gamble and ADP as income-investor examples, both with yields below the 5.09% Treasury.
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CoreWeavebondsartificial intelligenceMETANVDAdefault risk
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Related tickers and likely impact
META
• NeutralMeta Platforms
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $1.9T |
| Close on 10/20/2026 | 694.44 |
| Change that session | -1.56% |
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/20/2026 | 216.48 |
| Change that session | -0.28% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
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CoreWeave, which rents Nvidia-chip computing power to AI developers including Microsoft and OpenAI, has about $50 billion in debt and has never turned a profit, prompting fresh worries about whether AI demand can justify its borrowing. Its shares and bonds have tumbled, with 2031 bonds yielding about 16% and default insurance costs climbing to about 1,000 basis points. CEO Mike Intrator said in an internal memo that its $104.2 billion revenue backlog more than covers its debt obligations, while Nvidia CEO Jensen Huang downplayed the concerns and Nvidia agreed to buy unsold capacity through April 2032. The core risk, the article says, is that higher financing costs could make the model hard to sustain if demand weakened sharply, rather than that AI demand will collapse. Gartner estimates about 80% of neoclouds could shut down by 2030, and the cost of default protection has risen for SoftBank, while spreads for Amazon, Alphabet, Meta and Nvidia have hit records but risen more slowly than CoreWeave's.
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CoreWeave (CRWV) shares fell as much as 10% on Friday as worries over AI funding kept weighing on sentiment. The stock had rebounded from a 7% drop on Thursday after Nvidia CEO Jensen Huang said the company's strength was improving daily and its cost of capital was falling. Concerns about its debt-heavy balance sheet persisted after a widely shared chart showed its bond yields spiking. Nvidia holds roughly 47.2 million CoreWeave shares, about a 10% stake, and is also a major chip customer; CoreWeave was on track for a 21% weekly decline as of Thursday's close. Peer Nebius (NBIS) fell 5% in early trading.
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CoreWeave shares fell as much as 10% in premarket trading on Friday as concerns over AI funding continued to weigh on sentiment. The stock had rebounded from a 7% drop on Thursday after Nvidia CEO Jensen Huang said the company's strength was improving every day and its cost of capital was decreasing, though a viral chart of spiking bond yields has highlighted worries about its debt-heavy balance sheet. Nvidia holds about 47.2 million CoreWeave shares, roughly a 10% stake, and is also a major CoreWeave chip customer. CoreWeave was on track to end the week down 21% as of Thursday's close, while peer Nebius fell 5% in early trading and was also heading for weekly losses.
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Shares of Nvidia-backed CoreWeave steadied after a sharp slump as investors worried about the debt financing the AI data-center build-out; the loss-making company carries about $50 billion in debt. Nvidia CEO Jensen Huang, whose firm holds about a 10% stake, said CoreWeave's financial strength is improving and he sees no need for Nvidia to backstop it. CoreWeave's bond yield was around 15%, and the cost of insuring its debt against default rose to about 1,000 basis points, implying a nearly 63% chance of default in five years versus about 30% a year ago, even with Nvidia's deal to buy unsold capacity through April 13, 2032. Put-option volume hit a record on Wednesday as investors bought contracts that would profit if shares fell below $42.50, $50 and $60. Research firm Gartner said about 80% of neoclouds could shut down by 2030.
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