CoreWeave stock drops 13% as 2032 bonds hit record 14.5% yield, stoking AI debt bubble fears
SumitGup · x · 2026-10-15
CoreWeave fell 13% Wednesday after its 2032 bonds traded at a record 14.5% yield — issued in June at 9.625%, meaning unsecured borrowing costs jumped 5 points in four months. VC Chamath Palihapitiya shared the yield chart as a warning about a private credit bubble around AI.
The author argues the AI bubble lives in the debt more than the demand: CoreWeave raised over $35B this year, carries $52B in debt and leases, and paid $640M in net interest last quarter — roughly a quarter of revenue. The $104B backlog sounds great, but a backlog doesn't cover interest until data centers are built and customers pay. The accompanying chart shows quarterly net interest climbing from $264M in Q1 2025 to $640M in Q2 2026, with company guidance of $860-940M for Q3 2026.
Related event: CoreWeave Bonds Slump as Yields Hit 15.1%, Spreads Top 1000bps(12 posts)→
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