EETimes (16th correspondent) NVIDIA (US.NVDA) CEO Jensen Huang said on Thursday (15th) that the financial strength of artificial intelligence cloud service provider CoreWeave (US.CRWV) continues to improve, and he believes NVIDIA does not need to provide financial backstop support for it.
Jensen Huang, speaking at an event in Stockholm, said CoreWeave's strength is growing day by day, its cost of capital is declining, and he remains optimistic about the company's prospects.
However, market concerns over CoreWeave's credit risk continue to intensify. The cost of its five-year credit default swaps (CDS) also surged, briefly reaching 1194.5 basis points during the session, a record high, with market pricing reflecting a more than 60% probability of default within the next five years.
CoreWeave plunged nearly 10% early Thursday during U.S. trading, but reversed to close up 5.9%, at $69.69.
CoreWeave is an important customer and investment target of NVIDIA, relying mainly on borrowing to expand data centers and purchase AI computing equipment, with total debt of about $50 billion. Company executives emphasize, however, that its order backlog is sufficient to cover its debt obligations. (yc)
Jensen Huang, speaking at an event in Stockholm, said CoreWeave's strength is growing day by day, its cost of capital is declining, and he remains optimistic about the company's prospects.
However, market concerns over CoreWeave's credit risk continue to intensify. The cost of its five-year credit default swaps (CDS) also surged, briefly reaching 1194.5 basis points during the session, a record high, with market pricing reflecting a more than 60% probability of default within the next five years.
CoreWeave plunged nearly 10% early Thursday during U.S. trading, but reversed to close up 5.9%, at $69.69.
CoreWeave is an important customer and investment target of NVIDIA, relying mainly on borrowing to expand data centers and purchase AI computing equipment, with total debt of about $50 billion. Company executives emphasize, however, that its order backlog is sufficient to cover its debt obligations. (yc)
