[Elon Musk Reacts to CoreWeave Bond Plunge with 'Yikes'] Odaily Planet Daily reports that the unsecured bonds of AI cloud computing service provider CoreWeave, maturing in 2032, fell below 80% of face value on Wednesday, with yields exceeding 15%, reaching levels typically associated with distressed debt. After Chamath Palihapitiya mentioned this yield on social media, Elon Musk responded with 'Yikes.' CoreWeave's stock price dropped as much as 17% on Wednesday, and the price of its credit default swaps (CDS) also surged to a record high, reflecting a market-implied default probability of over 50% within the next five years. Analyst Gil Luria warned that CoreWeave relies on high-cost debt to expand its data centers, and if the AI funding boom cools down, the company could face repayment pressures, with its stock price potentially dropping to zero in extreme scenarios. If the company borrows at a 9% interest rate while achieving only a 5% return on investment, it could continue to destroy value even as its business scales up.