Fear

Oracle’s credit risk gauge on its debt closed at the highest level since 2009
A surge in bond issuance from large tech companies helped trigger the move
Investors are increasingly worried that the AI sector may be forming a bubble
The cost of protecting Oracle’s debt against default rose to about 1.28 % a year
This level is based on end of day credit derivative prices in New York
It marks the highest cost of protection on Oracle’s debt since March 2009
The price jumped nearly 0.03 % compared with the prior trading day
The gauge has more than tripled from around 0.36 % in June
Heavy funding activity by tech firms is adding pressure to credit markets
Oracle is being viewed as more exposed to AI related volatility in investor sentiment
The move fits into a broader rise in perceived credit stress for major tech issuers
These shifts are intensifying doubts about how sustainable the AI driven expansion will be

https://www.bloomberg.com/news/articles/2025-12-02/oracle-credit-fear-gauge-hits-highest-since-2009-on-ai-bubble-fears

5 replies (most recent on top)

Would love to see this company crumble!!! They deserve it.

Right on. Here is a good article on the subject:
https://binaryverseai.com/tpu-vs-gpu-ai-hardware-war-guide-nvidia-google/

TPUs do not replace GPUs.

Correct. TPUs are purpose-made for AI.

When OCI wants to increase fps in games, advantage Oracle.
If the business is to leverage efficient AI... not so much.

@a1 TPUs do not replace GPUs. They both have their place.

oh, well, with google minting TPUs for pennies, and us in bed with nvidia at astronomical gpu prices, no wander