AI BriefingAI Companies Are Trying to Hide Massive Debt
Key point
An investigation found that five Big Tech giants — Alphabet, Microsoft, Amazon, Meta, and Oracle — are hiding roughly $1.65 trillion in debt off their balance sheets.
Details
According to a Nikkei Asia investigation, the combined off-balance-sheet debt of the five largest US tech companies (Alphabet, Microsoft, Amazon, Meta, Oracle) reaches approximately $1.65 trillion. This exceeds their officially reported debt of $1.35 trillion.
- Meta alone holds approximately $420 billion in off-balance-sheet debt
- Companies are using off-balance-sheet structures such as special purpose vehicles (SPVs) and legally separated subsidiaries to make their financial statements appear healthier than they actually are
- Accounting experts warn this resembles the accounting techniques used by Enron, the energy company that went bankrupt in 2001
The backdrop is the race to build AI data centers. Big Tech companies are also issuing new shares in parallel to fund large-scale infrastructure investments, raising concerns about stock dilution and declining investor confidence. Experts point out that if the AI bubble bursts or monetization fails, this debt structure could become a serious risk factor.
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