CoreWeave investor defends AI cloud provider's $52B debt strategy

CoreWeave investor Evan Schlossman defends the loss-making AI cloud provider, arguing its $52 billion debt is backed by $103.7 billion in non-cancellable customer contracts from Microsoft and OpenAI. CoreWeave's bonds hit a 15% yield after criticism, but Schlossman says "take-or-pay" agreements with highly creditworthy clients secure repayment. He claims these contracts, covering 98% of revenue, are backstopped by other firms, reducing default risk. Critics like accountant Francine McKenna doubt Microsoft will honor commitments if demand falls, calling the company "ruthless." Gartner predicts 80% of neocloud providers will fail by 2030, though CoreWeave insists its backlog supports all debt obligations.