AI debt frenzy batters tech debt, traders rush to reprice risk.

This frenzy of financing for artificial intelligence is shaking investors in the more than $10 trillion US corporate bond market, triggering a repricing of risk around some of the largest technology companies that is showing up in soaring credit insurance prices, rising volatility and weakening performance. Giants including Oracle, Broadcom and SpaceX are among borrowers that have sold nearly $500 billion of new debt this year, funds being used to pay for the infrastructure powering AI. The pace and sheer scale of borrowing, combined with uncertainty over the technologys prospects and rising interest rates, is putting growing strain on the sector, saddling investors with losses and prompting demands for higher compensation to lend.