Meta’s Five-Year CDS Spread Hits Record as AI Spending Raises Debt Concerns

Meta Platforms’ five-year credit default swap (CDS) spread hit an intraday record Oct. 22, as plans for higher AI infrastructure spending sharpened questions about how technology companies will finance the buildout.

The spread rose as much as 8.9 basis points to about 119.3 basis points per year, the highest intraday level since the contracts began trading. Meta’s bonds also performed worse than U.S. Treasuries.

Meta put its future spending commitments under leases and contracts at about $825 billion, with many tied to AI computing capacity and infrastructure. In July, the company put its future commitments at nearly $700 billion.

Broader financing activity has also grown: AI-linked companies issued about $466 billion in debt in 2026, compared with $101 billion over the same period in 2025.

The increase in commitments has renewed concern that major technology companies may turn to debt to pay for AI infrastructure as they compete in a crowded sector.