I will not cry wolf, use it at your own discretion 🙂 Investors are increasingly buying credit default swaps (CDS) on major AI-related companies such as Oracle, Nvidia, Meta, Amazon, Alphabet, and SpaceX to protect themselves against the risk that the AI boom may not generate enough returns to justify the sector’s rapidly growing debt burden.

Weekly CDS trading volumes on these companies surged from less than $2 billion in July to more than $9 billion in September, while AI-related debt issuance climbed to $466 billion in 2026, up sharply from $101 billion a year earlier (!). Investors are becoming concerned that heavy spending on data centers, chips, and AI infrastructure could pressure cash flows and balance sheets if growth expectations are not met, leading CDS spreads.

https://www.ft.com/content/6dd31584-064c-4015-bf5d-e5747799ccd5