Tech Giants Borrow Billions for AI Expansion

Big tech companies like Oracle, Alphabet, Amazon, Meta, and Microsoft are borrowing huge amounts of money to expand their AI businesses.

They believe AI will make them a lot of money in the future.

However, some investors are worried because these companies are taking on a lot of debt.

The cost of insuring this debt, called a Credit Default Swap (CDS) spread, has gone up for some companies, like Oracle, which now has a record-high CDS spread of 212 basis points.

This means investors think there's a higher chance these companies might have trouble paying back their debts.

Despite these concerns, tech companies are continuing to invest heavily in AI, hoping it will pay off in the long run.