> AI collapse is imminent.

On Tuesday, venture capitalist Chamath Palihapitiya posted a chart showing that the yield on $1.25 billion of CoreWeave bonds due in 2032 "touched 15% today, then closed at a new high" of 14.5%.

"Is the AI buildout creating a private credit bubble?" Palihapitiya asked.

Musk, who owns the platform, replied with one word: "Yikes."

The selling spread to other AI cloud stocks: Nebius (NBIS) fell 11%, Oracle (ORCL) dropped another 9%, and the following stocks sank more than 10%: DigitalOcean (DOCN), Hut 8 (HUT), Cipher (CIFR), TeraWulf (WULF), and IREN (IREN).

CoreWeave rents out Nvidia (NVDA) chips to AI companies and pays for much of that hardware with debt. The company's interest expense rose to $640 million in the second quarter from $267 million a year earlier, and it lost $626 million in the quarter, according to Yahoo Finance data. Revenue more than doubled over the same stretch to $2.58 billion.

Total debt reached about $52 billion at the end of June, up from about $15 billion a year earlier.

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