Nvidia’s credit default protection costs saw their largest single-day jump in history, with $750 billion in AI transactions sparking debt concerns.

Costs to insure against Nvidia debt defaults hit a record high on Monday, as markets fret that its ongoing over $750 billion AI infrastructure deal could expand the company’s liabilities. ICE Data Services data shows Nvidia’s 5-year credit default swap (CDS) price climbed 14 basis points at one point to 82 basis points annually, marking the largest single-day jump for the swap since it began active trading last November. Last week, Nvidia announced its partnership with SK Group, parent of SK Hynix, tops $500 billion. Separately, Nvidia is in talks to provide up to $250 billion in guarantees for U.S. data center computing power projects leased by OpenAI, and may offer $350 billion in financing for OpenAI’s chip purchases. Sal Naro, chief investment officer at Coherence Credit Strategies, pointed out that AI infrastructure construction requires massive capital expenditure, and the bond market is facing a large volume of new supply. Markets are wary that opaque financing structures, off-balance-sheet transactions, and inter-corporate ties could trigger credit rating downgrades. Such financing typically demands investment-grade ratings, but firms like OpenAI and Anthropic are currently burning through cash at a rapid pace. Guarantees from large corporations can help AI infrastructure debt secure higher ratings; Broadcom previously provided most of the credit backing for a $35 billion chip financing deal for Anthropic.