The selloff follows an estimate from Gartner that data center owners need $8.5 trillion in revenue by 2030 to cover costs, while projected AI services spending is only $3.6 trillion. Gartner forecasts that 80% of neocloud providers like CoreWeave will be absorbed or fail by 2030. Amid the volatility, Nvidia lost about $270B in market value in one week, though CEO Jensen Huang stated he remains optimistic about CoreWeave's borrowing costs.
Tuesday, October 20, 2026
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CoreWeave Bonds Tank Under 80 Cents in AI Debt Selloff
US Markets5 days ago
Bonds financing the buildout of computer facilities for Nvidia, Meta, Microsoft and Oracle have dropped well below face value in recent weeks. Debt issued by the Nvidia-backed cloud provider CoreWeave has fallen to under 80 cents on the dollar, with investors demanding yields of nearly 15%. Other impacted securities include Meta's "Hyperion" bonds, which dropped to 92 cents, and Microsoft's "Project Excalibur" bonds, which are trading below 88 cents.
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