Nvidia has committed $500 billion to financing AI-focused cloud companies, including CoreWeave, Nebius and IREN, which rent Nvidia-powered computing capacity to developers. Rising borrowing costs and a sell-off in AI-related bonds are intensifying the financial strain on these partners. The widening credit-default-swap spread for CoreWeave indicates that markets perceive a greater risk of default. Announcements about debt restructuring, covenant breaches or emergency financing for CoreWeave will be closely watched for clues about the sector’s broader exposure to Nvidia’s financing commitments.
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