Core Wave's $52B debt risks AI growth

American company "Core Wave," which specializes in renting computing power to operate artificial intelligence applications, is facing significant financial pressures due to debts reaching $52 billion, coupled with rising financing costs and growing concerns about its ability to meet its obligations. The yields on its bonds have increased to around 15%, and its stock prices have dropped by approximately 30% in October, amid investor worries that the company has yet to turn a profit. Questions are mounting regarding whether the AI boom can deliver meaningful returns that justify financing its massive investments, especially amidst rising interest rates and challenges in expanding data centers. While major companies in the sector continue to operate, the danger remains focused on whether heavily indebted firms can generate sustainable profits, with growing doubts about the longevity of growth in the technology industry.

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