CoreWeave Inc.’s bonds have plunged to levels that typically indicate distress, in a swift move that has caught the attention of Silicon Valley leaders including Chamath Palihapitiya and Elon Musk.

The AI cloud-computing provider’s unsecured debt due in 2032 traded below 80 cents on the dollar on Wednesday, according to Trace pricing data. That’s widely considered the threshold for when a borrower is financially strained.

At that price, the bonds yield more than 15% — a figure noted by Palihapitiya that led Musk to respond “yikes” on his social media platform.

“If CoreWeave is borrowing at 9% and the best return they can get off of that is a 5% return, it doesn’t matter how much they scale,” he said.