AI infrastructure debt stress emerges as CoreWeave, SoftBank and Oracle face market pressure

Debt markets are showing signs of stress among major players in AI infrastructure. CoreWeave's bonds are yielding over 15%, a sign of high perceived risk. Insurance costs for SoftBank debt are rising. Meanwhile, some Oracle debt is trading at steep discounts, around 80 to 90 cents on the dollar, indicating investor concern about repayment.

These moves raise broader questions about whether the massive spending on data centers—a cornerstone of the AI boom—is sustainable. The financial pressure comes as companies race to build computing infrastructure to power AI models and services.