CoreWeave’s unsecured bonds due in 2032 recently traded below 80 cents on the dollar with yields spiking near 15%, triggering a 16% single-day stock drop and drawing “yikes” commentary from Elon Musk amid broader AI infrastructure debt concerns. The GPU cloud provider carries roughly $52 billion in debt and lease obligations against projected negative free cash flow exceeding $25 billion this year, with interest expense already more than doubling to $640 million in Q2. Management counters with a $104 billion contracted revenue backlog, nearly all 2027 capacity sold, and active pursuit of investment-grade ratings to unlock unlimited insurer capital for further chip-backed financing. Analysts flag risks from customer contract duration mismatches and potential overbuild if AI demand slows, while a key bond covenant test looms by March 2027. Trader sentiment reflects these leverage dynamics rather than imminent default.