BusinessPhoto: HT WorldAI Industry Debt Raises Investor Concerns Over Defaults
Credit markets are increasingly worried about the AI industry's large debts, exemplified by CoreWeave's five-year bond price falling 16% since July and its yield rising to 15%, signaling financial distress. The probability of CoreWeave defaulting within five years exceeds 60%. Similar concerns affect rivals like Nebius and TeraWulf. These fears have also impacted the tech-heavy NASDAQ, which has dropped to mid-May levels amid investor uncertainty about growing, opaque debt risks.
HT World·


