Aakash GuptaLead source
Investors lent $1.25 billion to the company that runs AI computers for Microsoft and OpenAI. Four months later, they're down about $230 million on it. And the company's stock just dropped 15% because the people who lend money to AI companies are getting nervous. The company is CoreWeave. Back in June it sold those bonds promising to pay 9.625% a year until 2032. Then investors started worrying about whether it can actually pay all that back. If you own one of those IOUs today and want out, nobody's paying you full price anymore. You'd get about 81 cents on the dollar. That's why the chart shows the yield at 15%, since whoever buys at 81 cents collects the same interest payments for a lot less money. CoreWeave has four of these bond deals out there, around $6.75 billion total, and every…Read original on X