📈Blackstone: AI Debt Fears Overblown as CoreWeave Drops 20%
TL;DR
Blackstone's Jas Khaira says worries about AI data center debt are overblown, even as CoreWeave stock fell over 20% in recent days. His case: the debt is backed by creditworthy hyperscalers.
Blackstone's Jas Khaira says worries about AI data center debt are overblown, even as CoreWeave stock fell over 20% in recent days. His case: the debt is backed by creditworthy hyperscalers. Altimeter's Brad Gerstner says GPU collateral alone is no longer enough.
Key Points
CoreWeave's debt reportedly reached about $50B, and its shares dropped over 20% recently
Blackstone lent CoreWeave $2.3B in 2023 when it had about $30M revenue, a template for later neocloud debt
Firmus cancelled a planned Australian IPO targeting roughly $30B
Khaira blames September rate rises, hot inflation and a flood of AI debt offerings for wider spreads
He calls AI ROI real but uneven, a sawtooth pattern
Why It Matters
The financing side of the AI buildout is the part most likely to crack first. Watch credit spreads for neoclouds, since GPU-only collateral is getting harder to defend.
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