CoreWeave (NASDAQ: CRWV) caused a panic in the neocloud trade after the yields on some of its bonds reached 15%. The high interest rates that investors are demanding to hold the company's current debt mean that it will be a lot more expensive for CoreWeave to borrow additional money for its future artificial intelligence (AI) infrastructure needs. The neocloud provider's yields for bonds with 2032 maturity dates have been surging throughout the year. That reflects concerns about how much capital it will need to fund the AI data center build-outs, but this is actually more of a CoreWeave problem than a neocloud issue.
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