Check Which CoreWeave GPU Loans CoreWeave Guarantees

S&P expects customers to repay CoreWeave’s GPU loans. If they fall short, the lenders have someone else to collect from.

CoreWeave sells computing power on Nvidia GPUs to companies building AI models, such as OpenAI and Meta. It finances most of those GPUs through separate subsidiaries that take out delayed draw term loans (DDTLs). Each subsidiary repays its loan from the payments its customers make under their contracts.

This structure gives CoreWeave’s GPU lenders a separate repayment source. When S&P Global Ratings estimated what CoreWeave’s unsecured bondholders would recover in a 2030 default, it left the DDTLs out of the calculation. S&P expects customer payments to repay those loans in full.

That assumption helps CoreWeave’s unsecured bondholders. If customer contracts are the only source of repayment for the GPU loans, those loans never compete with the bonds in a default. On November 4, one of CoreWeave’s unsecured bonds traded as low as 79.5 cents on the dollar. Investors buying at that price need to know every claim that could come before or alongside theirs.

Only one of CoreWeave’s DDTL facilities limits its lenders to the customer payments behind it. CoreWeave guarantees the rest. None of those guaranteed loans appear in the default math S&P used to estimate what bondholders would recover.