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AI compute company CoreWeave's bonds have slipped into distressed territory, with investors demanding 1,000 basis points more in yield than government bonds, prompting venture capitalist Chamath Palihapitiya to publicly question whether the AI buildout represents a private credit bubble, according to The Verge. CoreWeave shares have fallen more than 20 percent since the distress was identified, with apparent collateral damage spreading to other market segments and raising broader concerns about whether AI infrastructure investments are overheated.