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Back to CoreWeave Crash, AI Trade Cracks, Anthropic IPO Red Flags, Bill Gates Doomer, with Ben Horowitz.

Why Did CoreWeave Bonds Crush the Cloud Stocks?

Jason Calacanis says the biggest neoclouds got crushed after CoreWeave's bonds started to sell off. He calls the selloff a possible canary in the coal mine and says the week may have been an AI bubble, if one exists, popping or deflating a little.

On Tuesday, people on X, including Chamath Palihapitiya, pointed out that the yield on some of CoreWeave's debt had hit 15%. Yields rose because bond traders are worried about CoreWeave's ability to generate enough cash to support its debt and want a higher rate of return. Elon Musk added one word, yikes, headlines followed, and everything tanked. CoreWeave, IREN, and Nebius were down about 20% as publicly traded companies. On Wednesday, CoreWeave, IREN, and Nebius were down between 10% and 15%.

Grokipedia·CoreWeave·Chamath Palihapitiya

Transcript

CoreWeave Crash, AI Trade Cracks, Anthropic IPO Red Flags, Bill Gates Doomer ·

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More from this episode

  1. How Does CoreWeave's Box Pay the Bills?CoreWeave founder Michael Intrator, in a clip played from an earlier interview, says a customer such as Microsoft signs a contract and that contract goes into…
  2. What Default Odds Did CoreWeave's Swaps Imply?Chamath Palihapitiya says the number to watch is how the sharp money prices companies that borrow to fund these boxes, including CoreWeave, Nebius, and IREN.
  3. 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…
  4. Why Did Ben Horowitz Pass on Neoclouds?Ben Horowitz says he passed on the neocloud business because it can turn into a dangerous arbitrage. He uses LoudCloud as the example.
  5. Is the CoreWeave Crash Just Market Volatility?Jason Calacanis argues the CoreWeave crash is market volatility, not a fundamental break.
  6. Why Is Demand for Software Coders Still Rising?David Sacks says coding assistants opened a new category of bespoke software, and demand for coders is rising even though coding assistants write 95% of the…
  7. What Leaked From Anthropic's Investor Day?Jason Calacanis says Anthropic's investor day hit the AI trade in the same week as the CoreWeave selloff.
  8. Why Does Ben Horowitz Own Both AI Labs?Ben Horowitz says Andreessen Horowitz holds a lot more stock in OpenAI, and that the firm is philosophically long both OpenAI and Anthropic.
  9. Does David Sacks Expect a Strong Anthropic IPO?David Sacks says the body language out of Anthropic's investor day was strong, at least from what he heard, and that large public-market investors liked the…
  10. Why Should Anthropic Raise $200 Billion Now?Chamath Palihapitiya says his caution is not a knock on Anthropic.
  11. How Did Anthropic Stop Distillation Without Washington?Anthropic pressed Washington to crack down on open models on the basis of supposed IP theft. David Sacks says Anthropic could have stopped distillation itself.
  12. Why Did Coinbase Fine-tune a Small Model?David Sacks says Brian Armstrong posted, the day before Anthropic's blog, that Coinbase had fine-tuned an open-weight model with 9 billion parameters.
  13. Why Is Anthropic Training Models to Refuse People?David Sacks says Anthropic trains frontier models to be their own moral actor.
  14. Why Is Bill Gates the AI Doomer?Chamath Palihapitiya says Bill Gates was at the center of the last contagion and is now trying to insert himself into the middle of the reaction to artificial…
  15. Why Did Bill Gates Retire to Be Loved?Jason Calacanis says Bill Gates retired because becoming the world's richest man made him the most hated man on the planet. The hatred got in his head.

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