CoreWeave just paid $640 million in interest in a single quarter, up 139% in a year

To buy all those chips, they borrow huge amounts of money, using the chips themselves as collateral. CoreWeave now owes around $72 billion and lost $626 million last quarter, most of it just interest on the debt. A lot of this debt gets rated "safe," even though CoreWeave itself is rated junk. The loans are backed by rental contracts with companies like Microsoft. So the rating is really about Microsoft's ability to pay.

Take something risky, wrap it with something solid, and call the whole thing safe. Except chips are worse collateral than houses. A house holds value for decades. A GPU can lose most of its value in three years when the next one comes out. You're lending against something that's melting. Isn't this basically the same move that blew up in 2008 with mortgages? Is this smart financing, or 2008 with chips instead of houses?