(Bloomberg) -- Bond traders dialed back measures of credit risk associated with Nvidia Corp. on Tuesday after the company said it would limit its exposure in a $500 billion plan to finance the type of artificial-intelligence investments that are driving demand for its computer chips. Most Read from BloombergThe yields on Nvidia's 5.625% bonds that mature in 2056 slipped to 113 basis points above comparable Treasuries, a decline of 2 basis points. At the same time, the price of five-year credit default swaps narrowed as much as 5 basis points to 72.11 basis points a year, according to ICE Data Services. "Nobody knew what the $500 billion potential financing meant," said Sal Naro, chief investment officer of Coherence Credit Strategies. Nvidia has already signed large chip-and-investment deals with several AI companies, raising concerns that such circular agreements are inflating demand for its chips and corporate valuations across the industry.