Nvidia Debt Protection Costs Top Meta’s for First Time Since at Least November 2025

Default protection on Nvidia debt now costs more than coverage on Meta debt, marking the first crossover since at least November 2025, as AI-related borrowing exceeds an earlier projection.

AI-related debt issuance reached $489 billion so far in 2026, above an earlier projection of $322 billion. The updated total is higher than the roughly $466 billion figure in earlier coverage of AI-linked debt issuance.

Demand for AI chips remains strong, but lenders willing to finance further expansion are harder to find. One AI cloud services company raised the rate on a $5 billion loan to attract investors; its final yield topped 11%.

At the end of June, CoreWeave's debt stood at $51.6 billion, more than its market capitalization. Nvidia has ample cash, while the bond market is pricing risk tied to customers the chipmaker helped finance.