By Amanda Cooper

LONDON, Dec 11 (Reuters) – The cost of insuring Oracle’s debt against the risk of default has shot up after its latest earnings reignited worries about how much the broader corporate sector is spending on AI and the borrowing surge to fund it.

A growing debt pile, at just over $100 billion, means Oracle has become a bellwether for sentiment towards AI as ‍concern about a bubble in the sector grows with surging tech shares.

Trading in Oracle credit default swaps (CDS), which has exploded in the last year and are near their most expensive on record, tell a less upbeat story than its shares.

WHAT IS A CDS ANYWAY?

Essentially derivatives that offer insurance against the risk of a bond issuer – such as a company or a government – not paying creditors.

Bond investors hope

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