CDS trading on US tech jumps 90% as AI debt fuels rising credit risk for Oracle and peers

Since early September, trading in credit default swaps linked to major US technology firms has risen by 90%, reflecting investor concern over bond-funded AI projects. Oracle has become a focal point, with its CDS costs climbing to their highest level since 2009 and its AI and data center debt load exceeding $100 billion. As companies such as Meta, Amazon, Alphabet, and Oracle turn from cash to borrowing to finance infrastructure, more investors are using single-name and basket CDS to hedge potential AI-related credit stress.