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Tech Giants' CDS Costs Hit Record Highs Amid AI Debt Concerns
The cost of insuring the debt of major US technology companies against default has reached new peaks following a series of disappointing quarterly earnings reports. These developments have heightened concerns about the sustainability of the extensive borrowing that has been fueling the AI boom. Notable companies affected include Intel, Amazon, Alphabet, and SpaceX, with credit default swap (CDS) spreads for these firms reaching record levels. Market observers will be keenly watching for any further quarterly earnings reports from key tech companies to gauge whether these financial pressures persist.