CoreWeave stock sank this week as the credit market flashed a warning sign about the company’s borrowing.

Bond yields neared 15 per cent on concern about an AI borrowing binge, Barron’s and CNBC reported.

Yahoo Finance said the shares were drilled again the day after a panic-filled rout.

CoreWeave rents GPU-packed data centers to AI developers, a model funded with heavy borrowing.

A 15 per cent yield places debt in distressed territory, the article explains.

Other debt-funded AI infrastructure firms could face higher costs if lenders reprice risk.

Analysts ask whether Nvidia, CoreWeave’s key supplier, will come to the rescue, Barron’s noted.

What happens next likely depends on whether bond yields stabilize or keep climbing.

Read the full article for more details on the CoreWeave selloff.