After Nvidia’s collapse, the first to run out of cash aren’t AI companies—they’re the contractors building the infrastructure for AI.
CoreWeave fell 16% today, and as it kept falling, it went looking to borrow money. Reports say it’s planning to get Morgan Stanley and Mitsubishi UFJ to lead a loan of at least $4 billion, rated investment grade. Pay attention to that term: an IG loan, not convertible bonds or a stock offering. In other words, the equity market no longer wants to catch the AI falling knife, so companies are turning to banks instead.
Nebius next door is even more surreal: its earnings weren’t bad at all—quarterly revenue was up 68% from the previous quarter, ARR hit $6.4 billion, and new contracts topped $12 billion. Yet its stock still plunged 21%, simply because Microsoft’s compute capacity deliveries are being pushed back to Q2 2027. Earnings surge, stock price crashes. The market’s message is blunt: “I’ll listen to the story, but I’m not putting money in just yet.”
Looking back at the financing path for this AI infrastructure boom: first, burn shareholders’ money; when shareholders balk, issue debt. Even top student Microsoft has turned around and issued dollar bonds in 10 tranches. Now it’s CoreWeave and companies like it lining up to find lenders. The burn rate hasn’t changed; who foots the bill has—from shareholders to creditors.
BTC is sliding toward $71,000, gold at $3,868 has hit a one-year low, and markets are pricing in a 100% chance of a December rate hike. AI money and crypto money have long been in the same pool, and both are being drained. Before Nvidia’s November 17 earnings report—Kress’s first appearance—I won’t touch any coins tied to the AI narrative.
NFA DYOR
#AI #CoreWeave #美股 #比特币 #Cryptocurrency
CoreWeave fell 16% today, and as it kept falling, it went looking to borrow money. Reports say it’s planning to get Morgan Stanley and Mitsubishi UFJ to lead a loan of at least $4 billion, rated investment grade. Pay attention to that term: an IG loan, not convertible bonds or a stock offering. In other words, the equity market no longer wants to catch the AI falling knife, so companies are turning to banks instead.
Nebius next door is even more surreal: its earnings weren’t bad at all—quarterly revenue was up 68% from the previous quarter, ARR hit $6.4 billion, and new contracts topped $12 billion. Yet its stock still plunged 21%, simply because Microsoft’s compute capacity deliveries are being pushed back to Q2 2027. Earnings surge, stock price crashes. The market’s message is blunt: “I’ll listen to the story, but I’m not putting money in just yet.”
Looking back at the financing path for this AI infrastructure boom: first, burn shareholders’ money; when shareholders balk, issue debt. Even top student Microsoft has turned around and issued dollar bonds in 10 tranches. Now it’s CoreWeave and companies like it lining up to find lenders. The burn rate hasn’t changed; who foots the bill has—from shareholders to creditors.
BTC is sliding toward $71,000, gold at $3,868 has hit a one-year low, and markets are pricing in a 100% chance of a December rate hike. AI money and crypto money have long been in the same pool, and both are being drained. Before Nvidia’s November 17 earnings report—Kress’s first appearance—I won’t touch any coins tied to the AI narrative.
NFA DYOR
#AI #CoreWeave #美股 #比特币 #Cryptocurrency