The cost of “burning money” is showing: Oracle (ORCL.US) CDS has soared to an all-time high, and bonds are only one step away from garbage!

The Zhitong Finance App learned that on Friday, Oracle's (ORCL.US) credit risk index reached a record high, and market concerns about the company's aggressive cash consumption and future profitability of artificial intelligence investments intensified — especially after the launch of a new Chinese model that could rival products such as OpenAI.

According to ICE Data Services, the cost of using credit derivatives to protect Oracle from default rose by about 10 basis points to 198.23, the highest closing record in history, as investors requested more capital to protect Oracle's debts from default. The previous record was 198.18, which was set on March 27th.

Oracle is currently investing heavily in data centers, and the free cash flow from its operations has always been negative. Last week, S&P Global Ratings downgraded the company's rating to BBB-, which is just one step away from junk stock levels. The rating agency said it has always underestimated the amount of capital Oracle needs to invest in artificial intelligence up front.

Meanwhile, tech companies' stocks were generally hit on Friday after Kimi K3, an artificial intelligence model launched by Chinese AI startup Dark Side of the Moon, which raised concerns that other models might be left behind.

In the Bloomberg US High Rating Corporate Bonds Index, Oracle has approximately $117 billion in bonds, making it the largest company outside of the financial industry in the index.