Key points
- CoreWeave's 2032 bonds now yield above 16%
- Microsoft is reportedly rethinking neocloud deals
- CoreWeave's filings show its customer concentration
CoreWeave (CRWV) sold $1.3 billion of notes due 2032 in June with a 9.625% coupon. Those bonds now yield more than 16%. The coupon hasn't changed. The higher yield reflects the bond's lower market price and the return a buyer would earn if CoreWeave makes the promised payments through maturity.
The rise comes as reports say Microsoft (MSFT) is rethinking deals with neoclouds, the newer companies that rent out AI computing power. Microsoft was CoreWeave's top customer last year, at about 67% of 2025 revenue.
Reuters' summary of that reporting names Nebius, IREN, and Nscale, not CoreWeave, as the providers under tighter oversight. CoreWeave's shares still closed at $43.66 on Nov. 5, down 9.8% that day. That's 44% below the Oct. 13 close of $77.81, by our calculations. CoreWeave reports third-quarter results on Nov. 10, after the market closes.
Microsoft reportedly tightens oversight of three neocloud providers
Microsoft has tightened oversight of some data center projects from Nebius (NBIS), IREN (IREN), and Nscale, Bloomberg reported on Nov. 5. The report said Microsoft is stepping away from projects it deems risky and debating internally whether to sign new neocloud deals. Its focus is on expanding its own data centers, though it hasn't fully ruled out more neocloud contracts.
Two moves involve Nscale. Microsoft won't exercise an option to more than double its agreement to rent computing power at a Texas data center. It also pulled out of a deal to anchor Nscale's flagship data center in Loughton, Essex, after power connection delays. CNBC reported on Nov. 6 that Microsoft is shrinking its roster of neocloud partners and hasn't decided which ones it will stop using. Its list of Microsoft's neocloud relationships includes CoreWeave, Nebius, Chronoscale, IREN, Lambda, and Nscale.
Microsoft is also winding down an arrangement to rent AI computing from Oracle (ORCL), according to a follow-up report on Nov. 6. That report said Microsoft has been turning off rented capacity in recent months after declining to renew the contract.
"Our approach to infrastructure is built on flexibility and optionality, combining Microsoft-owned data centers, leased facilities and strategic partnerships with third-party providers to help us bring capacity online reliably and efficiently," a Microsoft spokesperson said.
Microsoft cut its 2026 spending forecast by $5 billion on Oct. 28, citing delays from outside providers. At IREN, Microsoft is the largest piece of the backlog, at $9.6 billion.
CoreWeave's latest filing leaves its top customer unnamed
CoreWeave's annual report names Microsoft at about 67% of 2025 revenue. Its latest quarterly filing uses letters instead of names.
In the June quarter, the top three customers were about 36%, 26%, and 10% of revenue. A year earlier, the top customer alone was 71%. The filing warns that Customers A through D may not be the same companies from one period to the next, so it doesn't identify the 36% customer. It lists Microsoft and OpenAI among CoreWeave's significant customers.
Committed contracts made up 98% of revenue in the June quarter.
The third-quarter results and subsequent filing may show whether the top customer's share changed. They may still leave that customer unnamed. Nebius reports on Nov. 12.
CoreWeave's default insurance costs far more than Nvidia's
A credit default swap works like insurance against a borrower not repaying its debt. It's priced in basis points, and one basis point is a hundredth of a percentage point. A higher number means buyers are paying more for that protection.
CoreWeave's five-year swaps spiked above 1,289 basis points on Nov. 5, passing their October peak, according to Deutsche Bank (DB). By Nov. 6, they had eased to around 1,155. The cost rose at much stronger companies too, though from far lower levels.
| Company | Spread (basis points) | Change in a month |
|---|---|---|
| CoreWeave (CRWV) | About 1,100 to 1,155 | Not given |
| Oracle (ORCL) | About 298 | Not given |
| Nvidia (NVDA) | About 139 | Up 76% |
| Broadcom (AVGO) | Not given | Up 49% |
| Amazon (AMZN) | Not given | Up 44% |
Figures as of Nov. 6. The report gave both 1,100 and 1,155 for CoreWeave.
Goldman Sachs (GS) counted five AI bond deals totaling $67 billion since Oct. 29, which took hyperscaler debt sales to $296 billion this year. Our AI debt tracker lists the disclosed financings.
In its June 30 debt schedule, CoreWeave listed about $4.4 billion of principal payments for the rest of 2026 and $6.2 billion for 2027. Total scheduled principal was about $35.6 billion.
Update, Nov. 6: Private neocloud Groq is reportedly seeking an $8 billion valuation, and its executive chairman criticized rivals for piling up financial obligations.
