As concerns about risks in the AI industry intensify, investors are seeking hedging protection through derivatives.

Investors and tech companies are seeking hedging against debt defaults and falling computing power prices through derivatives such as options and CDS. The cost of debt default protection for Amazon, Alphabet, Microsoft, Meta, and Oracle has risen to its highest level since 2021. Popular CoreWeave trades include put options expiring in 2028 with a strike price of $35, while the stock price is around $55. Jump Trading has established a computing power trading division to help clients hedge against the risk of falling computing power prices. The Silicon Data index shows that Nvidia B300 chip leasing prices have risen approximately 56% this year to $7.56 per hour (Source: Wall Street Journal).