CoreWeave default insurance spikes as $100,000 covers $1 million

The surge in credit default swap costs marks a visible shift in how investors are treating the AI buildout. Rather than simply buying the upside, more of them are now paying to protect against the possibility that the companies carrying the heaviest debt loads cannot service it. The cost of that protection is rising fastest for the borrowers who have taken on the most leverage, with CoreWeave's debt load tripling over the past year.

Oracle illustrates how the anxiety can be traced to specific projects rather than abstract sentiment. Its $160 billion of debt sits just above junk-rated status, and its New Mexico data-center build has already faced regulatory snags and local opposition. The company's agreement to defer lease payments if the facility is not online as planned in 2028 gives lenders a concrete reason to reassess the timeline.

There are signs the caution is now spilling into new borrowing. A deal for Volta Infrastructure faltered this week as investors who already feel full up on data-center debt demanded higher yields, suggesting the market's appetite for further exposure is being tested at the same time the cost of insuring existing exposure keeps climbing.