Nvidia's Debt Insurance Costs Exceed Meta, AI Financing Risks Rise

Nvidia's debt default insurance costs have surged more than twofold this year, surpassing Meta for the first time since November 2025. Goldman Sachs clients have dubbed it "a crisis without a crisis." Despite strong demand for AI chips, the real shortage lies in lenders willing to provide loans. According to Goldman Sachs, the issuance of AI-related debt has reached $489 billion since 2026, far exceeding the previously forecasted $322 billion. An AI cloud service company had to raise interest rates on a $5 billion loan to attract investors, ultimately yielding over 11%. Nvidia is cash-rich, but the bond market is pricing in the risks associated with its financed clients. As of the end of June, CoreWeave's liabilities reached $51.6 billion, exceeding its market capitalization. If financing costs reach 11%, such borrowers may become "workers" for bondholders. Nvidia was once the biggest winner in the AI financing wave, but tightening credit will expose it to the greatest risk, and the bond market has sent the bill.

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