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CoreWeave's Debt Stress Tests Private Credit's AI Financing Boom

3 weeks 1 day ago
An anonymous reader quotes a report from Reuters: Private credit's expanding role in financing AI infrastructure faced one of its clearest market tests this week as CoreWeave's bonds fell to distressed levels, raising questions about how lenders are pricing a boom built on chips, data centers and customer contracts. CoreWeave has about $50 billion of debt, according to LSEG data, making it one of the largest borrowers linking private credit to the AI buildout. The cost of insuring its debt against default climbed to about 1,200 basis points this week, while yields on some of its bonds rose to roughly 15% to 16%, signaling sharply increased investor concern over its credit risk. "There is still a price. Investors are still comfortable financing it, but they're demanding more compensation for it," said James Martin, senior US credit strategist at SMBC, referring to projects further from completion. Carlyle estimates that private credit could finance roughly $1 trillion of the AI infrastructure buildout but warns that aggressive lending could create concentration risks similar to those seen in software lending. "The clearest lesson is not to avoid AI compute exposure, but to set concentration limits before the buildout accelerates further, not after," Carlyle said.

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ChatGPT Can Peek At Your Chrome Tabs Now

3 weeks 1 day ago
OpenAI has updated its ChatGPT Chrome extension to let users access information from their open browser tabs. A demo video shows the new functionality in action. The Verge reports: It's also updated ChatGPT in the sidebar, with the full power of ChatGPT and your entire conversation history in Chat or Work to use without leaving the page you're viewing. It also enables ChatGPT Work to "control" your Chrome tabs for tasks like "sending messages, filling out forms, or downloading files," similar to Google's Gemini-powered "auto browse" feature, as well as organize or group open tabs.

Read more of this story at Slashdot.

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