CoreWeave’s recent troubles have sent shockwaves through the AI industry, as its debt has slipped into distressed territory. Investors are now questioning the financial sustainability of the AI buildout, with even the SPAC King chiming in with concerns. The company’s ambitious plans to tap into insurers’ capital are raising eyebrows, as it already owes over $35 billion. While CoreWeave’s remaining performance obligations from customers like Microsoft and OpenAI provide some comfort, the spectre of insolvency looms large. Other tech giants, such as Oracle, are also feeling the pinch, hinting at a broader financial undercurrent.

A ticking clock, indeed. The industry waits to see whether the AI bubble bursts or merely deflates. For now, the future remains uncertain, with CoreWeave serving as a stark reminder of the risks involved in the tech frontier.