Jensen Huang Defends CoreWeave as AI Infrastructure Concerns Mount
Nvidia CEO Jensen Huang insists CoreWeave is growing financially stronger following a sharp drop in shares and rising credit default swap costs.
Jensen Huang Defends CoreWeave as AI Infrastructure Concerns Mount
Nvidia CEO Jensen Huang insists CoreWeave is growing financially stronger following a sharp drop in shares and rising credit default swap costs.
CoreWeave Financial Stability Addressed by Nvidia Chief
Nvidia CEO Jensen Huang recently spoke out to reassure observers regarding CoreWeave financial stability amid sliding shares and climbing credit default swap costs. Speaking at an event in Stockholm on October 15, 2026, Huang stated that the GPU cloud provider's cost of capital is falling and that Nvidia does not need to backstop the company.
According to Bloomberg reporting cited by Cryptobriefing, Huang's remarks aimed to address anxieties triggered by a 15% single-session drop in CoreWeave shares in mid-October 2026. This slide coincided with a jump in the cost of the company's five-year credit default swaps, which function like insurance policies on a borrower's debt.
Debt Obligations and Revenue Backlog
CoreWeave has secured more than $35 billion in financing this year, with total debt and lease obligations standing at approximately $52 billion by the end of June 2026. In the second quarter of 2026 alone, the company spent $6.42 billion on equipment and property while generating $679 million in operating cash flow.
Carrying that financing has become more expensive, as CoreWeave's net interest expense more than doubled from $267 million to $640 million. Counterbalancing these obligations is a revenue backlog exceeding $100 billion, representing customer commitments to future spending that surpass current liabilities.
Broader Market Impact and Global Reactions
The market pressures surrounding AI infrastructure players also affected global equity markets. On October 15, 2026, Japan's Nikkei 225 fell 4.9% to close at 64,425.95, marking its third-largest single-day point drop on record.
Despite market turbulence, a Japanese Ministry of Finance official stated that G7 and G20 finance ministers see no financial instability risk stemming from the AI-driven sell-off, characterizing the global economy as resilient.
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