Apollo Global Management, a private equity firm, warned on Wednesday that the risks associated with corporate debt issued by hyperscale cloud companies powering the artificial intelligence (AI) boom are rising. Torsten Slok, the firm's chief economist, noted that the prices of credit default swaps (CDS) for hyperscale data centers are increasing. The spread between hyperscale data center CDS and bank CDS has widened from approximately 0 to about 60 basis points since October 2025. Slok believes this reflects a repricing of the credit fundamentals for hyperscale data centers by the market, where a debt-financed AI capital expenditure cycle is leading to increased leverage, negative free cash flow, and uncertain returns on depreciating assets.