[Cloud service provider CoreWeave's bonds plunged into distress territory] October 14th, according to Trace quotation data, AI cloud computing service provider CoreWeave's unsecured bonds due in 2032 fell to less than 80% of their face value on Wednesday, attracting the attention of Silicon Valley leaders Chamath Palihapitiya and Elon Musk. At this price, the bond yields more than 15%. After Palihapitiya mentioned this number on social media, Musk responded by calling it "scary." CoreWeave's credit default swaps (CDS) rose to record highs again. At current levels, market pricing suggests the company has a greater than 50% chance of defaulting within the next five years. CoreWeave's share price performance was also surprising, falling 16% during the session on Wednesday. D.A. Davidson analyst Gil Luria, who has previously called CoreWeave a "subprime tranche" in the field of AI, warned in a podcast on Wednesday that if the AI ​​financing boom subsides and CoreWeave is unable to repay its costly debt, its stock price could fall to zero.