Investor fears over the cost of the AI infrastructure buildout are SKYROCKETING: CoreWeave, $CRWV, dropped -20% over the first 3 sessions of the week, and then rebounded +5.9% on Thursday after Nvidia, $NVDA, CEO Jensen Huang expressed confidence in the company. However, $CRWV cratered another -12% on Friday, ending the week down -25%, its worst weekly performance since November. At the same time, the cost of protecting CoreWeave’s debt against default hit a record high, with credit swaps implying a probability of default of ~63% over the next 5 years. The pressure comes as CoreWeave relies heavily on high-yield debt to finance its data-center expansion, with its bond yields soaring above 16% as Treasury yields and persistent inflation further drive up borrowing costs. All while co-founder Brannin McBee said CoreWeave aims to secure investment-grade credit ratings to access “unlimited” pools of insurance capital, raising further concerns about how much more the company plans to borrow. The selloff has spread across the broader market this week, with the Semiconductor Index, $SOX, falling -11% this week and now down ~24% from its June peak, while the Nasdaq 100 dropped -5.5%, its worst weekly performance since April 2025. The AI growth story is facing more questions than ever.