ai spending

Oracle's 5-year credit default swap surged to 203 basis points on July 24, exceeding its 2008 financial crisis high after S&P downgraded the company one notch above junk over AI spending.

Heavy AI and cloud spending compresses free cash flow at major technology companies, forcing investors to reprice the sector.

Alphabet fell about 4 percent and Tesla dropped more than 5 percent in premarket trading after both companies signaled higher AI capital expenditures