Coreweave, the Nvidia-backed AI cloud provider, has seen its stock drop 25% this week amid growing concerns about its financial stability. The company is facing debt ranging from $50 billion to $52 billion, raising alarms among investors about its ability to meet these obligations. Credit-default swaps on Coreweave have surged past 1,000 basis points, a level associated with distressed credit, despite management’s assertions that its contract backlog is sufficient to cover debts. This financial strain is prompting market participants to reassess the likelihood of a potential bankruptcy announcement by Coreweave.
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