GMI Cloud CEO calls CoreWeave's roughly 15% bond yields "insane"
In brief
- GMI Cloud CEO Alex Yeh called CoreWeave's bond yields "insane" on October 16, Crypto Briefing reports.
- Yeh compared them with a 3.45% Taiwan-dollar loan secured by GMI Cloud.
- CoreWeave's 9.625% notes due 2032 hit a 15% yield and closed one session at 14.5%, per Crypto Briefing.
- CoreWeave co-founder Brannin McBee said the company is seeking investment-grade ratings on its chip-backed debt.
A gap of more than 11 points
Yeh compared CoreWeave's borrowing costs with a loan GMI Cloud secured at 3.45%, denominated in Taiwan dollars. Crypto Briefing's report doesn't say where he made the remark (it gives the date, not the venue).
Both firms sell access to AI computing power, but their borrowing rates are more than 11 percentage points apart.
On October 16, 2026, GMI Cloud CEO Alex Yeh called those yields “insane.”
According to the outlet, most of the pressure fell on CoreWeave's 9.625% notes due 2032. Yields on those notes reached 15% and closed one session at 14.5%. Other CoreWeave bonds traded at yields between 14.9% and 16%. Crypto Briefing also reported that CoreWeave shares fell 15.5% on October 14, closing at $65.78.
The publication said Yeh's comment highlighted GMI Cloud's argument that it may be better positioned than CoreWeave because of lower funding costs and proximity to Asian supply chains.
What CoreWeave owes
CoreWeave's debt and lease obligations totaled about $52 billion by June 2026, and the company reported second-quarter interest expenses of roughly $640 million, per the company figures Crypto Briefing cited. The outlet said selling spread from CoreWeave's bonds to related AI names, including Nebius and Oracle.
Rival executives weren't the only ones commenting. Elon Musk responded on social media with a single word ("yikes"), and investor Chamath Palihapitiya also commented online, Crypto Briefing reported.
Insurers, GPUs and divided analysts
CoreWeave co-founder Brannin McBee said the company is seeking investment-grade ratings on its chip-backed debt, meaning loans secured by the GPUs themselves. According to the outlet, the goal is to unlock capital from insurers, a pool McBee described as effectively "unlimited."
Analysts are divided, Crypto Briefing reported. Some have kept underperform ratings on CoreWeave, signaling they expect the stock to lag, while others point to the company's contracted backlog, which the outlet said exceeds $100 billion.
Frequently asked questions
Why did GMI Cloud's CEO call CoreWeave's bond yields insane?
Crypto Briefing reported that Alex Yeh compared CoreWeave's yields of around 15% with a 3.45% loan GMI Cloud secured in Taiwan dollars. That's a gap of more than 11 percentage points between two companies that both sell access to AI computing power.
What is chip-backed debt?
Chip-backed debt is a loan secured by the GPUs themselves. CoreWeave co-founder Brannin McBee said the company is seeking investment-grade ratings on this debt so it can draw on capital from insurers, a pool he described as effectively "unlimited."
How much debt does CoreWeave have?
According to the company figures Crypto Briefing cited, CoreWeave's debt and lease obligations came to about $52 billion by June 2026. The company also reported second-quarter interest expenses of roughly $640 million.
