Investors are increasingly turning to credit default swaps to protect themselves against potential defaults by major technology companies on their AI-related debt. In October 2026, Oracle’s CDS spreads reached record levels between 288 and 322 basis points, while those of Meta and Nvidia exceeded 100 basis points. CoreWeave presents the riskiest profile with bonds trading at 77 cents on the dollar and an implied default probability exceeding 60 % over five years. Hyperscalers had issued approximately 466 billion dollars in debt to finance AI infrastructure by mid-October 2026, and off-balance-sheet liabilities could potentially exceed 1.6 trillion dollars according to estimates from Moody’s and S&P Global.
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