Oracle default fears surge as its credit-default swaps jump to a two-year high, signaling rising investor anxiety. The five-year CDS spread nears 80 basis points, up from 55 earlier this year. The spike follows Oracle's massive $38 billion AI-driven debt plan to fund new cloud data centers. Analysts warn total debt could hit $290 billion by 2028, tripling from current levels. Markets see growing AI leverage risk, testing confidence in Oracle's balance sheet as AI spending collides with borrowing costs.