CoreWeave investor explains how the loss-making AI ‘neocloud’ provider plans to claw its way out of debt
Source: Fortune ·
The critics are wrong, according to Evan Schlossman, principal at Neostellar Capital Corp., which holds a stake in CoreWeave.
From the source
Shares in the AI “neocloud” provider CoreWeave fell 15.46% on Wednesday, and were down a further 5.62% in post-market trading, after venture capitalist Chamath Palihapitiya posted on X a chart showing the yield on CoreWeave’s bonds touching 15%. That’s an indicator that investors were demanding a steep premium for holding its debt. “Is the AI buildout creating a private credit bubble?” Palihapitiya asked.At the same time, The Financial Times published an interview with CoreWeave co-founder and finance lead Brannin McBee in which he said he wanted to borrow even more money—from insurance companies. The insurance sector’s access to capital “is unlimited,” he told the paper. “Like, that’s all the money in the world that sits in the insurance tranche.”CoreWeave’s vast debt pile has been the subject of controversy in the past. In 2025, a Fortune analysis of its financials concluded that the company had the potential to be “ground-zero for a future AI financial meltdown.” Debt owed by AI…