Cost of insuring against AI company defaults spikes

Semafor reports investors are buying credit default swaps as they question how quickly AI revenue will materialize to support the industry's infrastructure spending. As of October 15, insuring $1 million of CoreWeave bonds for five years cost $100,000, up from under $40,000 a year earlier. Protection against an Oracle default rose 12% in a week, with a $1 million policy costing $28,000.