The five-year credit default swap (CDS) spread for AI infrastructure provider CoreWeave surged by 74.5 basis points to 1194.5 basis points on Thursday, October 15, Eastern Time, reaching a new historical high. This implies a credit market-derived default probability of over 60% within the next five years. Yields on some of the company's bonds rose above 15% to 16%, reflecting a sharp increase in investor concern. NVIDIA CEO Jensen Huang intervened on the same day to "quell fears," stating that CoreWeave's financial strength continues to improve, its financing costs are decreasing, and there is no need for NVIDIA to provide a financial backstop. CoreWeave's stock narrowed its losses after Huang's remarks and turned positive, rising over 5.9%.

Furthermore, debt risks behind AI infrastructure investments are raising market alarms, with CDS spreads for Oracle, SoftBank, Amazon, Google parent company Alphabet, Meta, NVIDIA, STMicroelectronics, and SpaceX also showing significant increases, indicating a spreading tension in credit markets.