Slashdot has reported:

CoreWeave’s bonds fell to distressed levels this week, testing investor confidence in private credit’s growing role in financing artificial intelligence infrastructure. The move has raised questions about how lenders are pricing a boom based on chips, data centres and customer contracts.

The company has about $50 billion in debt, according to LSEG data, making it one of the largest borrowers tied to private credit and the AI buildout. This week, the cost of insuring its debt against default rose to about 1,200 basis points. Yields on some CoreWeave bonds reached roughly 15 to 16 per cent, signalling a sharp increase in investor concern about its credit risk.

“There is still a price. Investors are still comfortable financing it, but they're demanding more compensation for it,” said James Martin, senior US credit strategist at SMBC. He was referring to projects further from completion.

Carlyle estimates private credit could finance roughly $1 trillion of AI infrastructure. The firm cautioned that aggressive lending could create concentration risks similar to those seen in software lending. “The clearest lesson is not to avoid AI compute exposure, but to set concentration limits before the buildout accelerates further, not after,” Carlyle said.