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Ripple effect: Amid growing talk of an AI bubble, a study by Japanese market analysts has found that five of the largest American technology companies are carrying a collective "hidden" debt of over $1.65 trillion, driven largely by massive spending on AI infrastructure. That undisclosed sum exceeds the $1.35 trillion the same companies have officially reported on their balance sheets, and it has grown eightfold over the past four years.
According to estimates from Nikkei Asia, Alphabet, Microsoft, Amazon, Meta, and Oracle have together amassed roughly $3 trillion in total debt, a large share of it tied to exorbitant AI infrastructure spending – long-term data center lease agreements, along with costly servers, graphics accelerators, and other computing hardware that has yet to be delivered.
The report notes that less than half of the true debt figure appears directly on balance sheets, with the remainder disclosed only in accounting footnotes attached to SEC filings. Nikkei was careful to point out that the financial commitments behind this debt are legal under US law, but that the way they're reported makes it harder for retail investors to accurately gauge these companies' financial health.
