"Nvidia Must Step In": How Could CoreWeave's Collapse Threaten the World's Most Valuable Company?

Shares of CoreWeave, a major partner of Nvidia in the field of cloud infrastructure for artificial intelligence, fell by more than 7% during trading on October 15—following a 15% plunge the previous day. Investors are concerned about rising debt and borrowing costs in the AI sector and have doubts about the sustainability of the neocald business model following the release of a Gartner report.

All of this could put pressure on Nvidia, according to Yahoo Finance and Barron's: the world's most valuable company may be expected to step in and calm the market. In January, Nvidia invested $2 billion in CoreWeave and now owns 47.2 million of its shares—about 10% of the company’s equity, according to Yahoo. In trading on October 15, Nvidia’s stock fell 2%; the day before, it had lost 3%.

"There's zero chance that Nvidia will let CoreWeave gain a foothold," technology analyst Daniel Newman commented on X.

The world’s most valuable company has strong ties to the best-known—and most talked-about—neocloud provider, CoreWeave, according to Yahoo Finance. In January, Nvidia announced an expansion of its partnership with CoreWeave: as part of this deal, it invested $2 billion in CoreWeave stock, and CoreWeave, in turn, committed to building AI factories based on Nvidia technology with a total capacity of more than 5 GW by 2030. In addition, the portal notes, CoreWeave is a major customer of Nvidia. The company purchases graphics processing units (GPUs) from the chipmaker and leases computing power to other companies, including hyperscalers such as Meta.

"Nvidia needs to step in [to address what's happening in the market] and provide financial guarantees to CoreWeave and the entire ecosystem of non-cloud providers, — wrote Michael Haber, senior vice president of high-yield bond strategy at Jefferies, in a research note. “The survival and continued expansion of the non-cloud provider ecosystem are critical to Nvidia’s growth, as hyperscalers are increasingly developing their own chips,” he explained.

The sell-off of AI stocks and shares of artificial intelligence infrastructure providers, now in its second day, is driven by two factors, notes Yahoo Finance. First, investors continue to dump CoreWeave bonds with various maturities, fearing a slowdown in the AI sector and how it will affect the company’s already vulnerable balance sheet. Earlier this week, the yield on CoreWeave’s June bond issue reached 15%—an unprecedented level for new bonds, according to Bloomberg. Against this backdrop, the credit default swap (CDS) market began to price in a more than 50% probability of CoreWeave defaulting on its obligations within the next five years, the agency noted. This surge in CoreWeave bond yields prompted Elon Musk to comment on the situation on X, calling it “crazy.”

Second, the research firm Gartner has published a forecast stating that by 2030, “cost pressures and the lack of a distinctive business model will force more than 80% of non-cloud providers to cease independent operations.”

Bernstein analyst Madison Rezaei maintained her “underperform” rating on CoreWeave shares on Thursday. “In our view, the company’s long-term business model remains economically vulnerable,” she wrote.

Nvidia had previously provided a safety net for its partner: Under a $6.3 billion contract announced in September 2025, the chipmaker committed to purchasing CoreWeave’s unsold cloud computing capacity through April 2032 if customers did not utilize it. Analysts viewed this as a safeguard for the company against a decline in demand for AI computing.

Since its IPO in March 2025, CoreWeave’s stock has risen by nearly 60%, but the company’s financial results have not always pleased investors. For example, in May, the stock fell by nearly 10% after the company warned of rising capital expenditures due to higher chip prices, and its adjusted operating margin shrank from 17% to 1%.

This article was AI-translated and verified by a human editor