The credit default swap (CDS) spread for AI infrastructure provider CoreWeave surged to 1088 basis points on Thursday, up 33% from a week ago and 177% from a year ago, reaching levels typically associated with credit distress. Its 9.75% bonds due in 2031 saw their yield rise to 15.78%. Investor concerns about AI infrastructure companies' overspending and debt levels intensified, leading to CoreWeave's stock continuing to fall on Thursday after a 15.5% plunge on Wednesday. CoreWeave CEO Mike Intrator dismissed the market volatility, stating that the market "misunderstood and acted irrationally," and affirmed that the company has a backlog of over $100 billion, sufficient to support all its debt. Analysts warn that these concerns could become a self-fulfilling prophecy and potentially trigger broader issues for other AI-related companies, such as Oracle, whose five-year CDS spread also surged over 12% this week.