Cost to insure big tech debt surges as investors question AI returns
Photo: Crypto Briefing
Credit default swaps on CoreWeave, Oracle and even megacap tech names are widening as doubts grow over whether AI spending will pay off Wall Street is buying more insurance against big tech companies failing to pay their debts. It is also paying a lot more for it. In mid-October 2026, the cost of protecting against defaults by big tech and AI-linked borrowers climbed to historic levels. The driver is a simple question with an uncomfortable answer: can the AI industry earn enough to justify what it is spending? The instrument in focus is the credit default swap, or CDS.
Source: Crypto Briefing
