Growing apprehensions regarding substantial debts within the AI industry are pushing global credit spreads to a 17-month high, igniting fears of a credit crunch. Investors are increasingly worried about the financial stability of companies heavily invested in AI, as evidenced by a significant rise in default insurance trading. Major players in the sector, including hyperscalers, are expected to possess more AI-linked debt than previously acknowledged, raising alarms across credit markets. As bond markets signal stress and rising yields challenge tech stocks, stakeholders are urged to closely monitor the situation for potential fallout from this debt-laden boom. The intricate relationship between AI infrastructure funding and broader financial stability is becoming increasingly clear, with experts questioning who will ultimately bear the burden of this capital-intensive expansion.