CoreWeave’s Debt Insurance Costs Just Hit a Record. Can It Keep Funding Its AI Boom?

CoreWeave's credit default swap spreads hit a record 1,038 basis points, signaling market concerns about potential default. While the AI infrastructure company shows impressive growth with $2.58 billion in quarterly revenue and a $104 billion backlog, it carries $51 billion in debt and posted a negative $5.7 billion free cash flow last quarter. Rising borrowing costs could threaten the company's ability to fund its expansion if lenders become unwilling to extend more capital.