A protester waving a French national flag walks past a fire during clashes prior to the start of a demonstration to protest against the "high cost of living", in Marseille, southern France, on Oct. 17, 2026.

Thibaud Moritz | AFP | Getty Images

From AI companies financing data center projects to France's heavily indebted government, credit markets are flashing warnings as investors grow warier of borrowing risks.

Five-year credit default swap spreads have widened for CoreWeave , Oracle and SoftBank Group , as well as France and Italy, according to CNBC's analysis of FactSet data.

AI-related bonds have been selling off as markets raise the cost of capital amid concerns of a financing crunch. Neocloud demand is "off the charts," Nvidia CEO Jensen Huang told CNBC on Thursday, but he warned of a "scarcity of capital." "The demand of the capital is much greater than the availability of the capital," he said, adding, "that's going to get solved."

Countries like France face a similar crunch.…