CoreWeave Bond Yields Hit Record 15.76% as AI Debt Fears Erase $44 Billion in Market Value

CoreWeave (CRWV), the Nvidia-backed cloud provider, is under mounting debt pressure as investors sell its bonds amid growing concerns about an AI bubble. The company's $2.75 billion bond maturing in 2031 now yields 15.76%, a record high, surpassing the 15.74% touched on October 14. The company's five-year credit default swap spread has widened 171% this year and 36% over the past month to 1,115 basis points, signaling investors are paying more for default protection. The stress has spread to equities: CoreWeave shares fell to $56.50 on Thursday, down 70% from their all-time high. Market value has shrunk by $44 billion since May and $57 billion from its peak. The selloff has hit peers including Nebius (NBIS), IREN (IREN) and RUM Group (RUM). Earlier this month, Nvidia-backed Firmus withdrew its Australian IPO over a $30 billion valuation dispute. Gartner warns neocloud providers may be forced into large asset impairments by late 2030, citing a gap between rising AI spending and expected future revenue. CoreWeave recorded $2.5 billion in depreciation and amortization in the first half against $4.6 billion in revenue. Insiders have sold over $765 million in stock in the past 90 days. Still, CoreWeave holds a revenue backlog exceeding $104 billion, with clients including Microsoft, OpenAI, Anthropic and Jane Street.