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00:02Coreweave is emerging as a warning sign for the debt-financed AI boom,
00:06as borrowing costs rise and investors grow more cautious.
00:10Credit expert Max Frooms told Reuters the company is the canary in the coal mine,
00:14and warned that other AI-linked debt could face similar pressure.
00:18Yields on Coreweave's 2031 bonds exceeded 16% last week,
00:21while the cost of insuring its debt against default reached record highs.
00:25The company has accumulated more than $51 billion in debt and obligations to finance its AI infrastructure expansion.
00:32Coreweave shares lost nearly 25% last week, although Robinhood investors bought the stock at record levels.
00:38CEO Mike Intratore defended the company's finances, saying its backlog more than covers its debt obligations.
00:44For all things money, visit Benzinga.com.
