Jim Cramer Flags 3 AI Rally Risks, Highlighting Debt Behind $63 Billion Anthropic Deal

Mad Money host Jim Cramer warned that a two-day artificial intelligence stock rally does not justify an all-clear for the data center trade, identifying three key risks that remain unaddressed. Among his primary concerns is the debt-financed Broadcom $63 billion Anthropic deal that propelled market gains on Tuesday—an arrangement Cramer praised on X earlier in the day before questioning its underlying leverage on air. Key Takeaways: - Jim Cramer flagged three structural risks behind the latest two-day AI market rebound. - Lenders Blackstone and Bank of America are funding the $63 billion Broadcom-arranged Anthropic transaction via a special purpose vehicle (SPV). - High borrowing costs persist for neocloud providers, with CoreWeave bond yields touching 15%. - Federal Reserve rate expectations and geopolitical developments pose additional volatility for debt-heavy tech infrastructure firms. ## Re-Evaluating the $63 Billion Anthropic SPV Deal Financing for the hardware purchase is being arranged by Broadcom through a special purpose vehicle (SPV) backed by lenders including Blackstone and Bank of America. Under the agreement, Anthropic will lease hardware and networking gear from the SPV, with equipment deliveries set to begin in 2027. Although Cramer initially posted on X that the structure was "excellent for all involved," he subsequently cautioned on Mad Money that Anthropic is relying on debt rather than operational revenue. "People don't seem to grasp that [Anthropic] got the money in the Broadcom-arranged financing deal to purchase equipment from Broadcom," Cramer noted. Broadcom has additionally provided residual value support to absorb potential shortfalls if the leased hardware depreciates faster than projected. ## High Debt Yields Put Pressure on Neocloud Operators Cramer's remaining two warnings center on rising capital costs for neocloud infrastructure providers such as CoreWeave, Nebius, and Iren. Although CoreWeave stock gained nearly 6% on Tuesday (with intraday gains reaching almost 8%), its corporate bonds have traded at yields as high as 15%. Cramer remarked that positive data center news is frequently followed by renewed scrutiny regarding balance sheet leverage. While bond market pressure eased as oil prices fell and the 10-year Treasury yield slipped below 5%, market participants remain focused on upcoming monetary policy decisions. Ahead of Wednesday's Fed rate announcement, Morgan Stanley's Michael Gapen anticipates a hawkish hold with potential future tightening, while traders watch Warsh's guidance at 2:30 p.m. ET as a key test for borrowing costs. ## Why It Matters The financial mechanics supporting the AI build-out are shifting from corporate cash flows to balance-sheet leverage, vendor backstops, and private credit SPVs. While these complex debt structures allow hyperscalers and neoclouds to secure advanced silicon ahead of 2027 delivery timelines, they leave the sector vulnerable to sustained high interest rates. Investors should monitor whether high debt yields for operators like CoreWeave constrain future capital expenditure if monetary policy remains restrictive.