Trillions of dollars in borrowed money have powered the A.I. boom. But now there is growing uncertainty around just how easily more money can be obtained — and how much of it will be paid back.
Those questions burst into the forefront this week when investors rapidly lost confidence in one debt-laden data center company, CoreWeave. Prices of its bonds — the company has accrued $72 billion in liabilities to operate 51 data centers — crashed, and investors placed a more than 60 percent likelihood CoreWeave would fail to meet its obligations.
www.nytimes.com
Those questions burst into the forefront this week when investors rapidly lost confidence in one debt-laden data center company, CoreWeave. Prices of its bonds — the company has accrued $72 billion in liabilities to operate 51 data centers — crashed, and investors placed a more than 60 percent likelihood CoreWeave would fail to meet its obligations.
Weak Links Start to Show in A.I. Borrowing
Debt trouble at CoreWeave, Oracle and SoftBank raises questions about whether there are broader problems with the data center build-out.
www.nytimes.com
