The cost of insuring Nvidia’s debt against default rose as much as 0.14 percentage point intraday to 0.82 percentage point a year on July 27, the biggest such increase since credit-default swaps on the chipmaker began actively trading in November.

The move followed reports linking Nvidia to more than US$750 billion in potential AI infrastructure deals.

Nvidia said late last week that an initiative with the parent of South Korean chipmaker SK Hynix is worth more than US$500 billion.

The company is also in talks to provide a guarantee of as much as US$250 billion to help OpenAI lease computing from a US data center project.

Separately, Nvidia is discussing financing US$350 billion of OpenAI’s chip purchases for the same project, according to a person familiar with the matter.

Sal Naro, CIO of Coherence Credit Strategies, said the rise reflects concern that opaque financing structures, off-balance-sheet transactions, and intercompany relationships could pressure Nvidia’s credit ratings as AI infrastructure spending drives heavy debt issuance.

🔗 Source: Bloomberg