[Alphabet debt risk indicators rise, financial report revives concerns about AI debt] October 30th, as Alphabet Inc.’s stock price plummeted on Thursday, its debt default protection costs increased. The company's disappointing results have fueled concerns that its huge debt-backed spending on artificial intelligence (AI) may not pay off. According to ICE Data Services, the company's five-year credit default swap (CDS) quote rose by 5.3 basis points to 84 basis points annually, the largest increase since September 21. CDS will rise as investor concerns increase. CDS also rose for companies including Meta Platforms Inc. and chip company Broadcom. Gavan Nolan, executive director of fixed income pricing at S&P Global Market Intelligence, said that if AI investments pay off, stock investors may gain huge gains; but if the situation worsens, bondholders will have to bear losses. He added that bond investors are paying close attention to capital expenditures and when AI business revenue can generate positive free cash flow.