Meta Platforms, Oracle, and other tech giants face growing investor scrutiny as hidden debt from artificial intelligence investments reaches $1.65 trillion.
Tech giants are facing increased pressure as the massive capital required for artificial intelligence infrastructure creates significant off-balance-sheet debt. A Nikkei study reveals that hidden debt for major firms, including Meta Platforms, Oracle, Alphabet, Amazon, and Microsoft, has swelled to an estimated $1.65 trillion over the last four years. This figure represents an eightfold increase as companies race to build the data centers and computing power necessary to support advanced AI models. While the AI boom has rewarded infrastructure suppliers, investors are shifting from excitement to accountability. Goldman Sachs reports that hyperscaler leverage ratios have doubled in just six months, with $5.8 trillion in projected capital expenditures through 2030. Credit markets are showing signs of "indigestion," with widening spreads signaling concerns that these massive investments may not generate returns as quickly as anticipated. While companies with fortress balance sheets remain stable, the broader ecosystem faces potential rating pressure and higher financing costs if revenue growth does not keep pace with the heavy borrowing required to fuel the AI revolution.