CoreWeave shares tumble 16% as its bond yields near 15% on AI borrowing fears
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CoreWeave's stock plunged 16% and its bonds sold off sharply as investors grew worried that tech companies are borrowing too heavily for the AI build-out. The yield to maturity on its 9.625% bond due in 2032 hit 14.8%, while its 9.75% bond due in 2031 traded around 14.9%. Wells Fargo's Luis Alvarado said the "era of easy money" is fading as investors demand more risk compensation. Investor Chamath Palihapitiya flagged the soaring 2032 yield, which "touched 15%" and closed at a new high on Tuesday; Elon Musk responded "yikes." Palihapitiya has questioned whether the AI build-out is creating a private credit bubble.
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