Key facts
- CoreWeave's CDS spread has risen to around 1,000 basis points, implying a nearly 63% chance of default over five years.
- CoreWeave has about $50 billion in debt.
- Microsoft accounted for about 67% of CoreWeave's 2025 revenue.
- OpenAI has contracts with CoreWeave totaling about $22.4 billion.
- Meta Platforms has outlined plans to spend $14.2 billion on cloud services from CoreWeave through to December 2031, with an expanded agreement for $21 billion through December 2032.
- Nvidia agreed to purchase any of CoreWeave's unsold compute capacity through to 2032 for $6.3 billion.
The cost of insuring against potential US tech defaults has surged to record levels, reflecting growing credit stress in the AI sector, particularly for data centers. CoreWeave, an Nvidia-backed cloud company providing high-performance computing infrastructure for artificial intelligence, has secured tens of billions of dollars in contracts with major technology companies. However, its shares and bonds have slumped this week as investors question the borrowing behind the AI build-out. The company has about $50 billion in debt, and the cost of insuring it against default has risen to around 1,000 basis points, implying a nearly 63% chance of default in five years, up from about 30% a year ago. Microsoft accounted for about 67% of CoreWeave's 2025 revenue, while OpenAI has contracts totaling about $22.4 billion. Meta Platforms has an expanded agreement for $21 billion through December 2032, and Nvidia has agreed to purchase $6.3 billion of CoreWeave's unsold compute capacity through 2032. CoreWeave has relied heavily on private-credit investors, banks and bond markets to fund its rapid expansion, with significant debt financing led by firms including Magnetar Capital, Blackstone Tactical Opportunities, Morgan Stanley, and MUFG.