Yields on CoreWeave’s bonds climbed past 15% last week and its stock fell about 20%, as rising rates raised doubts about a business built on borrowing, according to Dakin Campbell at The Information. CoreWeave funds each data center with a loan repaid from a specific customer contract, then takes on more corporate debt to cover costs those loans don’t, so a hotter inflation report and a possible Fed hike make every new project more expensive. Since few AI infrastructure companies are public, CoreWeave now serves as a hedge for investors with stakes in private AI labs, who short its stock or buy credit default swaps on its debt. CEO Mike Intrator told staff the market was acting irrationally, and Goldman Sachs upgraded the stock to buy on Monday, but shares still slipped 0.4%.
