On Wednesday, database giant Oracle (ORCL.US) saw a key indicator of its credit risk record its largest improvement since February 2, after its latest quarterly earnings report alleviated market concerns over its artificial intelligence (AI)-related capital expenditures. Data from ICE Data Services showed the cost of Oracle's five-year credit default swaps (CDS) fell by as much as 0.054 percentage points to 1.52%, a one-month low. Typically, a decline in CDS prices reflects increasing investor confidence in a company's credit quality. Bolstered by strong sales performance and an outlook indicating sustained demand for AI computing, Oracle's shares rose approximately 10% in Wednesday's pre-market trading. The company's substantial investments in the AI sector had previously drawn attention from investors growing wary of a potential AI bubble. Last quarter, Oracle's capital expenditures reached approximately $18.6 billion, significantly above analysts' expectations of $14 billion. Nevertheless, the company maintained its full-year financial forecast of $50 billion. Analysts Robert Schiffman and Alex Reid noted in a report on Tuesday that Oracle's solid results and optimistic outlook have effectively soothed market sentiment. However, they also mentioned that due to lingering concerns, Oracle's bond and CDS prices "remain significantly higher than peers." Last month, Oracle raised $25 billion in the US high-grade market and indicated plans to raise an additional $25 billion in the equity market, a move that has eased investor worries about pressure on its balance sheet. The market expects Oracle will not issue new debt this year. To fund AI projects, hyperscale cloud providers are issuing debt at an unprecedented pace, raising concerns that an oversupply of bonds could pressure a market where spreads over US Treasuries are near historic lows. On Tuesday, Amazon (AMZN.US) issued $37 billion in bonds, setting a record for investment-grade bond issuance unrelated to mergers and acquisitions. Combined with a euro bond offering on Wednesday, Amazon's total fundraising in this round is expected to approach $50 billion. Analysts project that capital expenditures from the world's six largest hyperscale cloud providers could exceed $750 billion this year, an increase of more than 80% compared to 2025.