On Monday, the cost of protecting Nvidia Corp.’s debt against default surged to the highest level on record after reports that the chipmaker is in talks on more than $750 billion of artificial intelligence infrastructure deals. The widened credit default swap spreads reflect market concerns that the company may be taking on new obligations that could affect its debt servicing capacity. Credit default swaps are the benchmark measure of perceived credit risk; the spike indicates investors are demanding higher compensation for the risk of default.

The conversation about AI deals includes building data centers and providing hardware and software solutions to enterprises, which can boost earnings but also increase leverage if not matched with sufficient capital. The market reaction underscores how AI‑driven growth can magnify financial risk if the company’s balance sheet does not keep pace. Analysts will likely monitor Nvidia’s financial statements for signs of increased borrowing or debt issuance as the company pursues these expansive projects.