AI Companies Are Trying to Hide a Staggering Amount of Debt
3 hours ago
- Five US tech giants (Alphabet, Microsoft, Amazon, Meta, Oracle) have an estimated $1.65 trillion in hidden off-balance-sheet debt, exceeding their officially reported $1.35 trillion.
- Meta alone has about $420 billion in off-balance-sheet debt, drawing comparisons to Enron's use of shell companies to hide financial troubles.
- Experts warn of an AI bubble, with a widening gap between high valuations and low profits, and hidden debt may signal deeper issues.
- Tech giants are aggressively building data centers and selling new shares, risking equity dilution and investor confidence if the AI bubble bursts.