CoreWeave
2 articles
- The Two-Layer Constraint on AI Infrastructure
Power and permitting cap data center capacity. Credit markets determine which sponsors can finance projects within that physical ceiling. Hyperscaler balance sheets and guarantees provide the cheapest credit enhancement, concentrating the buildout among a few large platforms.
- The AI Buildout Is Real. The Credit Structure Is the Risk.
AI infrastructure is a real technology cycle wrapped in a leveraged-finance structure. Demand risk is moving from hyperscalers to banks, insurers, and bondholders through SPVs, GPU-backed debt, securitization, and synthetic risk transfer, making utilization, covenants, refinancing, and collateral the earliest signals of overcapacity.