CoreWeave debt insurance costs hit record amid financial stability concerns

Credit default swap costs for AI cloud provider CoreWeave have reached record highs, signaling growing investor concern about the company's financial stability and raising bankruptcy fears. CoreWeave is a major buyer of Nvidia GPUs and a key player in the AI infrastructure buildout, so its distress could ripple through the AI and crypto mining sectors that rely on similar hardware financing. Traders should watch for contagion risk to AI-linked tokens and crypto miners with comparable debt structures.