The AI industry’s gigantic debts are making investors nervous
Credit markets are coming for CoreWeave. The price of a five-year bond issued by the “neocloud”, which rents out data-centre capacity for artificial-intelligence models, has fallen by 16% since July. The bond’s yield is now 15%—a level associated with companies in financial distress—up from 10% in July. The price of credit-default swaps offering insurance against…