CoreWeave’s cost of borrowing fell to 7% on Tuesday.
The Applied Digital subsidiary issued $1.59 bn of high-yield bonds to fund a new 150‑MW building at its Polaris Forge 1 campus in North Dakota. The bonds carry a 15‑year contract to supply compute capacity to CoreWeave and were priced at a 7% yield, down from the 10% investors previously demanded.
The lower yield suggests lenders see less immediate risk in AI‑focused data‑center projects, a sector that has been priced for a rapid slowdown. Cheaper debt could let CoreWeave expand capacity without inflating operating costs, potentially narrowing the margin gap with larger cloud players.
Even so, the market remains volatile; a single bond issue doesn’t guarantee a broader repricing of AI infrastructure risk.