Credit protection costs are surging across the artificial intelligence industry, signaling growing investor concern about the sector’s financial health. Nvidia’s five-year credit default swap contracts hit a record 82 basis points, doubling since early July after the company announced AI commitments potentially exceeding 750 billion dollars. CoreWeave reached 855 basis points, corresponding to roughly a 50% probability of default within five years according to standard pricing models. The six major AI companies in question now represent 8.6% of duration times spread risk among US high-grade corporate bonds, with roughly 460 billion dollars in direct debt and approximately 1.2 trillion dollars in lease commitments.
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