How Close Is CoreWeave to Its Breakeven?

Chamath Palihapitiya says CoreWeave's average interest rate on the debt that funds the boxes is about 8.5 percent, and one GPU loan, DDTL 1.0, spiked to 15 percent. That higher rate could become the price of future borrowing. About half the build is financed and half is not. The company has about 78 to 80 billion dollars of assets and 35 billion of debt, so he does not think the surface story is that they are already sunk.

The bind is customer concentration. Seventy-five percent of the revenue comes from three companies, and some of those companies are walking down what they expect to spend. His team puts CoreWeave about 5 billion dollars from the point where it might not cover its obligations if borrowing stays in the 10 to 15 percent range. Credit default swaps moved, then bond yields. He calls that a negative reflexive loop. He still does not think they are in real risk. It is a confidence game, and the market has to believe it can support another 35 billion dollars from this company alone.