Nvidia partner GMI Cloud calls CoreWeave’s 15% yield ‘insane’

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By Aileen Chuang, Bloomberg · 16 Oct 2026, 09:00 Image: Gabby Jones/Bloomberg The founder of a cloud computing company with a similar business model to CoreWeave said the 15% yield on the latter’s bonds is “insane,” compared with the roughly 3.45% rate his company secured on a recent Taiwan dollar loan. “This is an advantage,” GMI Cloud Chief Executive Officer Alex Yeh said in an interview on Thursday. He argued that cheaper capital and faster execution — helped by proximity to Asian supply chains — give AI infrastructure companies that operate in the region an edge as investor jitters raise funding costs for their Western rivals. CoreWeave did not respond to an e-mailed request for comment. CoreWeave bonds this week were trading at deeply distressed levels, sparked by wariness of its plans to take on even more debt after already borrowing tens of billions to finance an unprecedented buildout of AI computing capacity. Meanwhile, companies like GMI Cloud benefit from being able to borrow in local currencies, which significantly lowers their costs compared with raising debt in dollars. CoreWeave and GMI Cloud are so-called neoclouds, which sell computing power generated from advanced computer chips that are used to train AI. Their success is contingent on their graphics processing units coming online on schedule, because the companies have borrowed large sums of money against customer contracts that can only generate revenue once the projects are up and running. ADVERTISEMENT CONTINUE READING BELOW “You have to continue to pay that interest without having revenue come in — that’s one of the biggest issues,” Yeh said. These types of deals have grown rapidly in the US but are only beginning to take off in Asia, where GMI Cloud is among the few companies borrowing money to purchase GPUs. Last month, it secured a NT$13.9 billion ($429 million) five-year loan from 14 banks for a data centre in Taiwan. The company was also seeking another $300 million for a facility in Thailand, people familiar with the matter said earlier. CoreWeave and GMI Cloud both have agreements with their supplier Nvidia Corp. to purchase unsold computing power, though the deals are structured differently. Such arrangements have raised concerns of circular financing that creates false demand. On Thursday, Nvidia Chief Executive Officer Jensen Huang said his company didn’t need to backstop CoreWeave and that its cost of capital “is actually decreasing.” ADVERTISEMENT: CONTINUE READING BELOW GMI Cloud is headquartered in Mountain View, California, and operates in the US, Taiwan, Japan, Indonesia and Thailand, according to its website. CoreWeave has also begun to move into Asia, with three projects underway in Indonesia. Yeh said his family’s four-decade-old business in Taiwan’s semiconductor industry has helped GMI Cloud find reliable Taiwanese contractors for construction, electrical equipment and servers. He added that partnerships with conglomerates and prominent families in Asia have also enabled his firm to move more quickly. “Am I worried?” Yeh said when asked about the turmoil in markets around AI companies. “Not a single bit, especially [since] our interest rates and customers support us.” © 2026 Bloomberg Google See more of Moneyweb Google News Follow our coverage Newsletters Get news in your inbox Social Media Join the conversation Social media Follow us on our official channels: TAGS: AI | CoreWeave COMMENTS 0 You must be signed in to comment. SIGN IN SUBSCRIBE or create a free account. Free users can leave 4 comments per month. 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Nvidia partner GMI Cloud calls CoreWeave’s 15% yield ‘insane’

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